What's your take on tax cuts/GST increase?

[FROSTY:Me]

Ya know I for the life of me couldn't see the sense in the uber Gubberment cutting every working persons tax on one hand then increasing GST on the other. How on earth is it a benifit to me?
Sneaky buggers though aint they. Increasing gst gets all the tourists and has a bit more of a crack at new zealands "cash economy"
Whats your take in it??

[Juzz976]

Trying to kurb domestic spending, they're wanting to raise the retirement age and get rid or the super.

It also brings us closer to a more communist economy, those with money to spend will be taxed more so the government can turn around and give payouts to lower earners and families.

By the time I retire it will be my responsibility to ensure I have food and shelter, not the government its all tied up with the kiwi saver. If a person has not saved money or invested for their own retirement then they will have no choice but to continue to work until - a. they die, b. win lotto, c. sickness benefit.

My view anyhows, I'll be alright I plan to retire at 45.

[SMOKEU]

I think the aim of this was to give people a false sense of hope. These days it's rare to get something for nothing.

[steve_t]

Yeah, it's more user pays. The wealthy people who buy a new plasma tv every few years or a new Porsche will contribute more GST. It takes away tax from what you earn to tax more on what you spend.
I don't know if it's a benefit to you personally, Frosty, but hopefully it benefits the country as a whole.

[mashman]

Trying to kurb domestic spending, they're wanting to raise the retirement age and get rid or the super.

It also brings us closer to a more communist economy, those with money to spend will be taxed more so the government can turn around and give payouts to lower earners and families.

By the time I retire it will be my responsibility to ensure I have food and shelter, not the government its all tied up with the kiwi saver. If a person has not saved money or invested for their own retirement then they will have no choice but to continue to work until - a. they die, b. win lotto, c. sickness benefit.

My view anyhows, I'll be alright I plan to retire at 45.

I won't save my money. I'll spend it and hopefully when I die the kids can have the house. I'll live on fook all quite happily, have done it before, will do it again...

Your Step Dad has worked on the public trains for 43 years... 3 years longer than he should have. Somewhere along the lines the trains were privatised and the pension fund dissapeared... The govt can fuck off if they think i'm going to flog my ass off, any more than I already am, to pay for some rich cunt to get a massive pension...

My take, it's got nothing to do with the economy, it's all to do with giving "you" a well earned tax break and offsetting that tax break against GST. They're just a bunch of socially challenged money robbing/grabbing bastards... factor in that that 9/10's of the population actually believe that these guys have our best interests at heart and you can see why they would implement policies like this... pointless.

as you were

[neels]

Just a redistribution of how the tax is paid. Makes no difference to the overall amount of tax they collect.

The people probably most advantaged are those on high incomes with huge mortgages and fuck all disposable income, as they get the tax cuts but aren't spending the money so don't pay the increased GST. Then buy another rental property with the extra tax cut money, get more of a tax refund on the loss from the rental property, pay even less tax.

[Juzz976]

Yeah, it's more user pays. The wealthy people who buy a new plasma tv every few years or a new Porsche will contribute more GST. It takes away tax from what you earn to tax more on what you spend.
I don't know if it's a benefit to you personally, Frosty, but hopefully it benefits the country as a whole.

Most rich people claim back their GST as they generally direct a business which can pay for most of their wants and needs. Its a descrimination tax,

'you want to buy food for your family, wtf you better give the government some more $ first. Oh excuse me I didn't realise you were rich, heres your money back.'

[steve_t]

Most rich people claim back their GST as they generally direct a business which can pay for most of their wants and needs. Its a descrimination tax,

'you want to buy food for your family, wtf you better give the government some more $ first. Oh excuse me I didn't realise you were rich, heres your money back.'

Apart from wealthy restaurant/cafe owners, which businesses get to claim GST back on their food? Anyone who claims back the GST on their wants and needs had better hope they don't get audited by the IRD. I got told the other day that some farmer wanted to write off their spa pool as a luxury water trough - haha... good luck with that

[aprilia_RS250]

IRD gets it money from the following

19% of gov't taxes come from GST.
43% from individual income taxes.
17% from corporate taxes.

so....
Corp rate dropped from 30% to 28%, -2%

If top personal rate -5%
Second top tranche -3%
Third top tranche -3.5%
Lowest tax rate -2.5%.

But GST went up 2.5%.


So you cut 43% of your revenue by say 4% (depending on how many people pay in each bracket)
17% of corp taxes by 2%
Only to increase the 19% proportion by 2.5%....
Where does the wealth transfer from, from tax receiver to tax payer


clear as mud

[cowboyz]

Apart from wealthy restaurant/cafe owners, which businesses get to claim GST back on their food? Anyone who claims back the GST on their wants and needs had better hope they don't get audited by the IRD. I got told the other day that some farmer wanted to write off their spa pool as a luxury water trough - haha... good luck with that

farmers are rogues! with the lack of 'small communities' and everything beign electronic nowadays i would say the R&M bill for most farmers is alot less than it used to be!

[Juzz976]

Apart from wealthy restaurant/cafe owners, which businesses get to claim GST back on their food? Anyone who claims back the GST on their wants and needs had better hope they don't get audited by the IRD. I got told the other day that some farmer wanted to write off their spa pool as a luxury water trough - haha... good luck with that

You'd be surprised at what gets claimed on, $500,000 boat, entertaining clients.
Trip to fiji - conference... and so on.
They may only pay themselfs SFA but all they need to buy is Food and even then half of that is supplied by their business.
They still get all the toys they need, my business will Want, a new sign...maybe a mazda rx7 with a sticker on it and $10,000 of work on the engine so the sign doesnt fall over, and I'll have my GST back thanks and tax free petrol.

[steve_t]

You'd be surprised at what gets claimed on, $500,000 boat, entertaining clients.
Trip to fiji - conference... and so on.
They may only pay themselfs SFA but all they need to buy is Food and even then half of that is supplied by their business.
They still get all the toys they need, my business will Want, a new sign...maybe a mazda rx7 with a sticker on it and $10,000 of work on the engine so the sign doesnt fall over, and I'll have my GST back thanks and tax free petrol.

I don't doubt there are accountants out there that will claim almost anything as they get their clients to sign a waiver removing any culpability from the accountant.
Overseas airfares don't contain GST.
Business owners still need to (try to) pay themselves at market rate or the IRD has words.
An RX7 as a business vehicle will incur a reasonable amount of Fringe Benefit Tax.

Aside from me being pedantic, I do see what you're trying to say and you're right. A lot of business owners are getting away with far too much crap claiming!!

[FROSTY:Me]

Mind you dya remember that story about the bunch of mates that went to the pub??
Thing is if theres no incentive for those "fat cats" to keep their organisations based in New Zealand they will -(and lets be honest Have) gone offshore. Then who loses ?
It isn't as simple as just tax. Those people if they can affford a $500000 launch most likely employ at least 6 staff and contribute to the economy. Yea maybee directly they don't contribute as much tax but I bet the boat sales company is happy. The travel agent got an ok comission. The nice food place he eats at can pay their staff.
Take those guys out of the pool and New Zealand I feel is well and truely worse of financially.
I wish the government had BETTER incentives for the likes of F and P to keep their manufacturing in NZ and telescum to keep their call centre based in Auckland etc.
Incidently Im a smaller employer and I am able to claim roughly $200 a month for cleaning expenses and coffee/tea for staff

[Swoop]

Start taxing religion.

[Madness]

Don't forget that ACC levies out of wages and salaries are going up too...