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

[pete376403]

I disagree. If the banks didn't offer CREDIT, then we wouldn't be able to buy things that we can't afford... all it does is run up a national debt that we're all held accountable for through taxation. It's bullshit! and has nothing really to do with us and all to do with profit maximisation.

+1 on the lawyers though

Banks HAVE to offer credit - it's the only thing they have to sell. Otherwise how do they pay interest to the depositors who put their money in the banks?

[aprilia_RS250]

Why are they borrowing from these Aussie banks?

The RBNZ is NZ's central bank. It's function is to offer financial stability for NZ i.e. money supply (inflation and deflation). Given most banks in NZ are aussie owned apart from kiwibank they are able to borrow and lend at unlimited volumes at rates equal to OCR from RBNZ. Say you go to Westpac to take a mortgage, you have a loan book trader who will go to RBNZ and borrow at OCR and lend the mortgage amount to you at some rate OCR + Margin %. This margin % is usually 2-4%, depending on how much risk you pose in defaulting. The profit they make ends up in aussie coffers. Hence if the gov't wanted more dough they'd directly tax you.

[Clockwork]

Ya wanna explain that one to me?--sorry I genuinely don't get it.
To me if ya don't spend it then you don't pay gst on it.

Yes, but whats the point in saving money unless you eventually intend to spend it?

+ bank fees, interest, farting fees, and not forgetting our loving ACC... blah blah very soon there wil be more bartinging for trading...

I don't think financial services such as Bank fees attract GST. To many wealthy people & businesses moving money around would get badly hit if it did.

[SPman]

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

Where do people get this strange idea, that they're in the worlds top highly taxed list?
NZ is way down the list - around the middle!
It seems to be more a complaint by those who think ANY tax is too much! - but still want all the social infrastructure, health, education, etc etc......but don't want to pay for any of it.

The past Govt left this countries books in a shit state, right down to using ACC as a pseudo Welfare System. Their fiscal responsibility and spend, even in their dying stages of power was appalling. National are turning this around albeit slowly.

What fucking universe do you actually live in? Endlessly repeating a factless mantra, doesn't make it true.

[NighthawkNZ:Me]

I don't think financial services such as Bank fees attract GST. To many wealthy people & businesses moving money around would get badly hit if it did.

They may or may not either way i can guarantee they will put them up as well... (I can't remember what the tax is for bank fees but it is a serve so there is probably GST on it... and I can't remember what tax you pay on your interest either (With Holding tax or something)

Either way guarantee they will use this to hike them...

[MikeL]

But... we don't live in the EU (thank fuck).

So just remind me, which of the EU countries are below NZ in the OECD?

And have you ever actually spent any time living in one of those countries (not just passing through as a tourist and noticing only the arrogant waiters)?

I lived in Europe for a number of years in the 70s. Couldn't wait to get back to NZ - a paradise of fresh air, open spaces and cheap food. Gradually in the intervening time I've seen us throw away almost every single advantage we had over the Europeans. In several trips to France and Italy in recent years I've noticed that in almost every respect life is better there, provided you don't want to live in the big cities. It's going to take a lot of persuading to keep me in NZ now.

[Swoop]

So just remind me, which of the EU countries are below NZ in the OECD?.

Your comment regarding "a paradise of fresh air, open spaces" was more of the direction I was referring. The "environment" that we have here - laid back, uncrowded, rather than the economic. Sadly we are still the Banana Republic economically.[/QUOTE]

And have you ever actually spent any time living in one of those countries (not just passing through as a tourist and noticing only the arrogant waiters)?.

Five years actually.

[rustic101]

What fucking universe do you actually live in? Endlessly repeating a factless mantra, doesn't make it true.

Clearly not the same Universe as you. Your's appears to be smaller and oxygen starved! I'd recommend you move to a new planet or at least start taking your meds, you Fuck Pig (see its easy to to swear and be an arse hole).

At what point in my post did I 'endlessly repeat a fact-less mantra..'??

[mashman]

Banks HAVE to offer credit - it's the only thing they have to sell. Otherwise how do they pay interest to the depositors who put their money in the banks?

Absolutely. If you're printing money for free, it's a no lose situation... But at least they look after their clients... until people can't pay and then the debt is written it off and we all pay for it

[Max Preload]

I have already worked out that I will be approx. $24 worse off per week than what I am now after introducing the tax cuts (I will be able to calculate properly once I see the tax cut, just working on figures out in the public at the moment).

I can't see how that's possible because if you expended your entire $1080/w after tax income on GST attracting supplies, you'd only then be $24 worse off and that's not accounting for the tax cut.

[Max Preload]

In reality, a lot of retailers now think "these people just have a tax cut. And we haven't been able to increase our prices in a year due to recession! Now they have some money, we can increase the prices. Better yet, let's use "GST Increases" as an excuse".
So, off they go increasing the prices of items by a whallopping amount.

Your argument is flawed. If they couldn't increase their prices because of a recession, meaning people just won't buy the goods, then blaming it on GST isn't going to override that.

Oh, and it's a 2.2% cost increase of goods to consumers due to the GST rise, not 2.5%.

[Max Preload]

They may or may not either way i can guarantee they will put them up as well... (I can't remember what the tax is for bank fees but it is a serve so there is probably GST on it... and I can't remember what tax you pay on your interest either (With Holding tax or something)

Either way guarantee they will use this to hike them...

There is no GST on financial service charges - they are an 'exempt supply' - that means interest and bank charges do not carry GST. You pay resident witholding tax in lieu of income tax (interest you are paid is income). You get the difference back between what you paid in RWT on interest and what should be paid at the applicable marginal tax rate when you do your return.

[Marmoot]

Your argument is flawed. If they couldn't increase their prices because of a recession, meaning people just won't buy the goods, then blaming it on GST isn't going to override that.

Oh, and it's a 2.2% cost increase of goods to consumers due to the GST rise, not 2.5%.

Ummm....but that was not an argument?
And I'm not sure what you are trying to insinuate in your post.
Sounds like you are just trying to contradict posts for argumentative purposes?

[Mudfart]

poll on the MSN nz homepage yesterday..
"Do you intend to save the extra money you will get from tax cuts?"
2000 said no, 900 said yes.
I guess those 900 won't need to spend tax savings on extra fuel prices, and the extra GST.
I also figure the enitre 900 work for the grubbermint depts in varing capacities...
whereever MORONS are found, starting at management levels.

[Max Preload]

Ummm....but that was not an argument?

So you didn't make a claim and then try to support it with spurious reasoning? I'm pretty fucking sure you did. Let's have another look:

In reality, a lot of retailers now think "these people just have a tax cut. And we haven't been able to increase our prices in a year due to recession! Now they have some money, we can increase the prices. Better yet, let's use "GST Increases" as an excuse".
So, off they go increasing the prices of items by a whallopping amount.

Yep. Looks like you did.

And I'm not sure what you are trying to insinuate in your post.
Sounds like you are just trying to contradict posts for argumentative purposes?

I insinuate nothing. No wonder you don't get it - there's nothing being insinuated.

I just contradict bullshit - bullshit like claims 'many retailers are going to use this GST increase as an excuse to hike prices because they can't otherwise, in a recession' when in fact they can change their prices whenever they damn well please.