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

[scumdog]

To you the consumer, if you buy a $1000 item, after the GST increase it will cost you $1020.

Not really the end of the world is it?

Certainly wouldn't make me rush out to buy consumer goods as the fear mongers are suggesting.

Pinging ya Grab Snatch & Take for a car ya bought in another country suck big-time!

[Forest]

To you the consumer, if you buy a $1000 item, after the GST increase it will cost you $1020.

Not really the end of the world is it?

Certainly wouldn't make me rush out to buy consumer goods as the fear mongers are suggesting.

An item that costs $1,000 incl GST at 12.5% would actually cost $1,022.22 incl GST at 15%.

But I otherwise agree with you.

[schrodingers cat]

An item that costs $1,000 incl GST at 12.5% would actually cost $1,022.22 incl GST at 15%.

But I otherwise agree with you.

Shit! That extra 22c is the tipping point! I'm off to buy a big fuck off flat screen tv and a new car. I think I'll put in on my credit card and pay it off at the minimum monthly rate. I'm saving big now...



Seriously - cheers for the reminder of how the math actually works :-)

[AD345]

Don't want to lose NZs position in the 'highest taxed countries' list, do we?

Tsk

don't buy into the propaganda. We do pretty fucking well

2005 data

[geoffm]

Tsk

don't buy into the propaganda. We do pretty fucking well

That is income tax only, so indirect taxes aren't included and are a significant hit. I wonder what it would be as a % GDP and % wages?
The other side is that most wage earners only care about the after tax income and what it can buy. In NZ, that is not much.

[pete376403]

Even at 15% GST we're still better off than a lot of countries, esp those is the EU.

chart near the end of this article
http://en.wikipedia.org/wiki/Value_added_tax

[schrodingers cat]

I wonder what it would be as a % GDP and % wages?

I've often wondered how much of my wages ends up as tax in one form or another. Im guessing its a good 50%

I guess I should just be grateful to have a job...

[Swoop]

Even at 15% GST we're still better off than a lot of countries, esp those is the EU.

But... we don't live in the EU (thank fuck).
I'm still trying to find out why primary produce like cheese and meat is so bloody expensive here.

[aprilia_RS250]

Actually an increase from 12.5 percentage points (lets call them GST units) to 15 GST units represents a 16% increase in GST
ie
1% of 12.5 GST units = .125
2 /.125 = 16

Which is to say the Governement's GST take will increase by 16%

So OK in relative terms then....
19% of gov't taxes come from GST.
43% from individual income taxes.

GST revenue increases by 20%, so 19% * 20% = 4% increase in actual revenueIncome Personal rates drop by:
Top 35/38 = -8%
2nd 30/33 = 10%
3rd 17.5/21 = -17%

Say average drop in gov't revenue from lowering personal rates is 12%. So 43% * 12% = 5% decrease in revenue.

You're still better off with tax cuts....

Remember the government is run by muppets. Always will be. It's inefficient because it doesn't have any incentive systems put in place to decrease costs and increase level of service, like a private business does in order to compete and grow. Tax is seen as a drag on growing standards of living because that money you put into gov't coffers a large chunk of that is wasted. Many economic studies have been done on tax, all of them show the negative correlation of living standard increasing to lowering the tax rate.

[scumdog]

I've often wondered how much of my wages ends up as tax in one form or another. Im guessing its a good 50%

I guess I should just be grateful to have a job...

In a simplistic way:

Income tax at lower rate is 'about' 23% (or have things changed?)
GST soon to be 15%

So if you're on the lower tax bracket then 38% of what you earn is soon to go on those two taxes alone I guess??

And if you're paying 33% PAYE....

[scumdog]

But... we don't live in the EU (thank fuck).
I'm still trying to find out why primary produce like cheese and meat is so bloody expensive here.

'Cos they can get so much money selling it overseas?

("So why sell it cheap here when I can get so much more by exporting it?" is the line of thought, ergo we pay the overseas price...)

[Swoop]

("So why sell it cheap here when I can get so much more by exporting it?" is the line of thought, ergo we pay the overseas price...)

Scarily enough...

[mashman]

'Cos they can get so much money selling it overseas?

("So why sell it cheap here when I can get so much more by exporting it?" is the line of thought, ergo we pay the overseas price...)

Have you noticed the ad for the lamb producer (silverfernfarms I think), who are now offering the best cuts of lamb to the NZ public... WTF!!! so you were paying the same price as the EU, but the EU was getting the best cuts and you were getting what was left... Aye, ye look after yer own eh!!!

[NighthawkNZ:Me]

http://nz.news.yahoo.com/a/-/top-sto...s-tax-changes/

As per and accordance with.. the rich get richer and the poor get poorer...

Plus ETS which puts fuel then freight and the price of living up then you add 15% GST (price of my living going way up more than my so called tax cut...)


told yah...

[steve_t]

http://nz.news.yahoo.com/a/-/top-sto...s-tax-changes/

As per and accordance with.. the rich get richer and the poor get poorer...

Plus ETS which puts fuel then freight and the price of living up then you add 15% GST (price of my living going way up more than my so called tax cut...)


told yah...

The 'union economist' needs to be directed to post #24 of this thread.

"The tax cuts will benefit earners in proportion to their salaries, with high earners reaping the biggest gains." Well, duh. The biggest gains will be had by the people that pay the most tax... (enter people whining about how rich people avoid taxes by using trusts or claim tax deductions on their personal shit).

I like how even the union economist is complaining how the benefits will be in "proportion" to their salaries. Since the income tax a person pays is proportional to their salaries, the tax cuts will benefit those who pay the most tax. Easy.

Scumdog is right about the meat, dairy, fruit exports. The same products sell for over 3x as much in overseas countries compared to here.