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

[SPman]

From the Standard...

"This is using the Government’s own figures as dutifully re-printed by the media – so no adjustment for the massive inflation caused by the budget that means that roughly half of households will be worse off at the end of the year than at the start of it (according to NZ Institute of Economic Research).
The graph still doesn’t look good.
Danyl’s nicely pointed out where average wages and salaries are on the graph (not median, which are lower, and could have made the graph look worse…).
bradluen in the comments has calculated the relative gain in income, for those who reflexively add that “of course the rich do better in absolute numbers, they earn more, they get more…”

Net gain as a percentage of income:
If you earn $10K/year: 0.23%
If you earn $100K/year: 2.17%

And by the time you take out increased costs of mortgages from raised interest rates, higher rents from landlords passing on their tax avoidance being closed and extra childcare costs… well, we can all see where the government’s borrowed money for their tax change is going – and it ain’t to average kiwis."

[Marmoot]

...

Yea whatever. I don't like arguing with this kind of views and/or language. So yeah you win. You should be proud. Congratulations.

[NighthawkNZ:Me]

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.

because petrol goes up, freight goes up... on average before the end user gets the any goods they have been freighted, couriered 3 times, ie; farmer to factory, factory to store warehouse, store warehouse to supermarket. Each time adding an extra increase, which now means food and other goods go up before the increase in GST increase is even added... Now with the increased goods cost we add any ETS tax (if any) and then GST which is now 15% of a overal greater cost... which over all is going to be more than 2.5% increase.

Even if you don't change your spending average person will be worse off. Fuel, Food rates, rent, power, phone, internet, bike accesserioes

Now businesses don't care as they can claim on the GST anyway but it is the end user that fronts the brunt of gst bill...

They are wanting us to save good... but we are in a recession and the way out of that is to spend to give the a kick start to the overall econmony... so okay we have to find a balance... this is making it difficult

I know I will over all be at least $20 worse off...

[FROSTY:Me]

Hey guys I figure I have got this right. By paying every possible bill now rather than deferring them till next month you save about 2.2% on the total bill right now don't you?
Not really an issue on say a $200 bill but say on $10000 its worth paying early. Or is my maths totally screwed?

[steve_t]

Hey guys I figure I have got this right. By paying every possible bill now rather than deferring them till next month you save about 2.2% on the total bill right now don't you?
Not really an issue on say a $200 bill but say on $10000 its worth paying early. Or is my maths totally screwed?

Nah Frosty. Invoices issued to you this month will still be the same if you pay them on the 20th. It's the same for your debtors as at 1 October. You'll just have to make an adjustment via a GST105 form that hopefully your accountant has forwarded to you

[FROSTY:Me]

Ahh fuggit who cares ? I paid all the bills and might have enough left over to pay for a beer later

[steve_t]

Must be your shout on the 20th then

[sinned]

There is no doubt - I will be better off and by a lot. Hehehe more money to feed the beast. Just got paid today - last one at the old tax rate. And all vehicles, bike, cans are full of gas at today's gst rate.

[Max Preload]

because petrol goes up, freight goes up... on average before the end user gets the any goods they have been freighted, couriered 3 times, ie; farmer to factory, factory to store warehouse, store warehouse to supermarket. Each time adding an extra increase, which now means food and other goods go up before the increase in GST increase is even added... Now with the increased goods cost we add any ETS tax (if any) and then GST which is now 15% of a overal greater cost... which over all is going to be more than 2.5% increase.

Even if you don't change your spending average person will be worse off. Fuel, Food rates, rent, power, phone, internet, bike accesserioes

Now businesses don't care as they can claim on the GST anyway but it is the end user that fronts the brunt of gst bill...

The GST to the end user rises by only 2.2%. Businesses merely charge GST on behalf of IRD, collect it and deduct what they've paid in GST and pass on the balance. So that collection and deduction process does not affect the price of the goods. Residential rent doesn't have GST either.

They are wanting us to save good... but we are in a recession and the way out of that is to spend to give the a kick start to the overall econmony... so okay we have to find a balance... this is making it difficult

I know I will over all be at least $20 worse off...

I refer you to this post.

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 even accounting for the tax cut.

The tax cut on $1080/week net is $49.96. That's from the NEW PAYE table. Offset the loss of $24/week from spending all the $1080/week on GST attracting items and you're still $25/week better off. So you'll forgive me if I don;t believe you that you'll be $20/week worse off having shown actual workings and figures, not mere conjecture.

Yea whatever. I don't like arguing with this kind of views and/or language. So yeah you win. You should be proud. Congratulations.

So you've been caught out talking shit and now you're going to run off and bless your eyes. See ya!

[Crazy Steve]

So you've been caught out talking shit and now you're going to run off and bless your eyes. See ya!

Ha Ha Ha Ha Ha Ha Ha Ha Ha...

He is probaly hiding in the toliet atm so his mummy can't here that hes still up...

Crazy Steve.

[Crazy Steve]

Yesterday I robbed two banks in Auckland...So I should be fine for a little while thanks IRD ! !

Crazy Steve.

[FROSTY:Me]

Must be your shout on the 20th then

Nope on the 20th I'll be sunning myself on a beach many MANY miles norf of here.

[MikeL]

Five years actually.[/QUOTE]

Then you will agree that in almost every material respect you would be better off back there?

And if you kept your eyes open you would have noticed that environmentally and socially the Europeans have made huge improvements while NZ has stagnated not just economically but in these areas as well.

Which is my point. Whereas 30 years ago I would not have hesitated to choose NZ now the difference is less clear-cut. In our attempt to catch up with the rest of the world we have thrown away our unique advantages. Now we are heading towards having the worst of both worlds.

[Swoop]

Then you will agree that in almost every material respect you would be better off back there?

Financially, yes.
95% of anything else = "no".

30 years ago I would not have hesitated to choose NZ now the difference is less clear-cut. In our attempt to catch up with the rest of the world we have thrown away our unique advantages. Now we are heading towards having the worst of both worlds.

Quite true. Politicians have made some horrendous cock-ups which have cost the country dearly. Trying to "lead the world" with the Emissions Trading Scam and the OSH nazi's + taxman crippling our competitiveness...

Luckily we still have lovely scenery.

[Marmoot]

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.

http://www.nzherald.co.nz/business/n...ectid=10678125

http://www.nzherald.co.nz/business/n...ectid=10678218