15% GST

[The Stranger:Me]

Each to his own.

Thank you, I graciously accept your capitulation, that was exactly my point from the very start. To each his own, it's not up to you to decide which way is best or the most appropriate way to distribute, package or consume water, so don't try and engineer "your" result with selective taxation.

It's been a pleasure.

[Pascal]

Suddenly we don't need all the people to process applications, review them, investigate them. There is no more benefit fraud. There is nothing to apply for.

Yes ... but ... but ... what is that going to do to unemployment numbers?

[p.dath]

Yes ... but ... but ... what is that going to do to unemployment numbers?

Haha. What your comparing is the tax payer paying Government employees on a good income versus the cost of paying those same people the dole.

I know which one is going to be cheaper for the tax payer ...

[MisterD]

Gareth Morgans proposal was to give everyone $10,000. P.A., not to remove tax on the $10,000.

Are you sure? I thought the plan was a guaranteed minimum income of $10k pa. So if you're working you get your first $10k with no deductions and if you're not the state gives you $10k type of thing...

[Winston001]

Random curiosity here. But why did you stop quoting at the point where I said I think it's a nice idea but unfeasable?

Cos I'm a clot??!!

My apologies, I was focused on the point that GST exceptions don't work. Which you know.

[MikeL]

Returning to my point about differential rates of GST...
I happened to have dinner the other night with some Europeans (a French couple, an Italian and a Brit). Although they could see that a that single-rate GST is attractive from the accounting point of view, they said that there has been little or no debate in their countries about switching to a NZ-type system. When I asked them why, they said that it was almost universally accepted that the social advantages of their schemes outweighed the disadvantages.
Not only do they differentiate luxuries from necessities, but they use the system to further cultural and educational aspirations. So the French have a low GST rate on books, for example.
Their perspective is completely different from the opinion that prevails in NZ. If you analyse the reasons, it comes back to what I said initially: our system was engineered for the convenience of business by people in thrall to the great god Efficiency. If we smugly proclaim that we have the "best" GST system in the world, it merely shows that we have the mentality of accountants.

[Coldrider]

Returning to my point about differential rates of GST...
I happened to have dinner the other night with some Europeans (a French couple, an Italian and a Brit). Although they could see that a that single-rate GST is attractive from the accounting point of view, they said that there has been little or no debate in their countries about switching to a NZ-type system. When I asked them why, they said that it was almost universally accepted that the social advantages of their schemes outweighed the disadvantages.
Not only do they differentiate luxuries from necessities, but they use the system to further cultural and educational aspirations. So the French have a low GST rate on books, for example.
Their perspective is completely different from the opinion that prevails in NZ. If you analyse the reasons, it comes back to what I said initially: our system was engineered for the convenience of business by people in thrall to the great god Efficiency. If we smugly proclaim that we have the "best" GST system in the world, it merely shows that we have the mentality of accountants.

So where is the mentality of Accountants ranked along side the mentality of the average New Zealander?

[Pascal]

If you analyse the reasons, it comes back to what I said initially: our system was engineered for the convenience of business by people in thrall to the great god Efficiency. If we smugly proclaim that we have the "best" GST system in the world, it merely shows that we have the mentality of accountants.

Or that we're a bit more libertarian in that our GST rate does not punish people for their choices?

[MikeL]

Or that we're a bit more libertarian in that our GST rate does not punish people for their choices?

An interesting choice of words. If everything is taxed at 15% except basic foods, the person who chooses to eat a McDonalds hamburger is being "punished" because he doesn't buy the raw ingredients and cook them himself at home? But if 15% is the rule, and the zero-rated basic foods are the exception, where does the idea of punishment come in? It's a reward for thrift for those on low incomes while the rest of us are no worse off.

If I choose to ride a BMW instead of my humble Honda will I be "punished" by having to pay a higher price?

I have the uncomfortable feeling that many people on this forum, contemplating a zero-rated bottle of milk and a magnum of Dom Perignon with 15% GST would only see the injustice of being "punished for their choice". How blind is that?

[davereid]

they said that it was almost universally accepted that the social advantages of their schemes outweighed the disadvantages.
Not only do they differentiate luxuries from necessities, but they use the system to further cultural and educational aspirations.

So some "official" is employed to decide whats a luxury and whats a necessity ? Whats cultural and whats not ?

God help us all..... wood for my deck will be taxed, but if I promise to make a marae it wont be.

[Coldrider]

Oh shall we feed the pleebes tonight?
Yes please, do open a bottle of Dom Perignon with Gst 15% darling.
Oh dear my fair Lady, this is tax deductible* though, and we claim the gst back.
Oh well, we shall just have to chuck out some crumbs.

* 50% entertainment tax

[Oscar]

Oh shall we feed the pleebes tonight?
Yes please, do open a bottle of Dom Perignon with Gst 15% darling.
Oh dear my fair Lady, this is tax deductible* though, and we claim the gst back.
Oh well, we shall just have to chuck out some crumbs.

* 50% entertainment tax

Unless he can show he was entertaining clients, there are no deductions available.

[Coldrider]

Unless he can show he was entertaining clients, there are no deductions available.

And how many IRD inspectors are invited out to dinner?

[MikeL]

So some "official" is employed to decide whats a luxury and whats a necessity ? Whats cultural and whats not ?

God help us all..... wood for my deck will be taxed, but if I promise to make a marae it wont be.

Of course in our super-efficient economy we don't employ any "officials" to decide what's legal or illegal, what's a biosecurity risk or safe, who's a suitable immigrant, what's a deductible expense or not...?
What's the difference?

Interesting interpretation of the word "cultural", btw. The example I gave was books.

[Coldrider]

Speaking of entertainment, can someone tell are sex workers GST registered?