New Zealand - The Good, The Bad and The Ugly.

[patches]

Thoughts on the Greens' proposal to add more taxes for the wealthy?

For those who don't know, the rough idea of the proposal is:

• 1% tax on net individual wealth over $1,000,000
• 2% tax on net individual wealth over $2,000,000
• 2 new higher income tax brackets kicking in at $100,000pa and $150,000pa (currently the highest bracket is 33% which kicks in for income over $70,000pa).

aaaaand go!

[davetapson]

Thoughts on the Greens' proposal to add more taxes for the wealthy?

 

For those who don't know, the rough idea of the proposal is:

• 1% tax on net individual wealth over $1,000,000
• 2% tax on net individual wealth over $2,000,000
• 2 new higher income tax brackets kicking in at $100,000pa and $150,000pa (currently the highest bracket is 33% which kicks in for income over $70,000pa).

aaaaand go!

 

 

The interesting thing is how few tax payers there are (2.6M?) and how few earn reasonable bucks...

 

Excerpt:

 

At the other end of the scale, Inland Revenue data shows that in the year to March last year – the last year for which there is complete data – 203,121 people paid tax on annual income of between $100,000 and $150,000.

Another 55,108 earnt between $150,000 and $200,000 and 44,419 pulled in more than $200,000.

This does not include the very high net wealth individuals with assets of more than $50 million who get their own department at Inland Revenue.

While this tally of six-figure earners adds up to more than 300,000 people, it’s not a large proportion of the roughly 2.6 million people in the labour force.

The bulk of New Zealanders earn between $40,000 and $80,000, as shown in the chart below. So income of $100,000 probably does meet the requirement for “well-off”

[davetapson]

Be interesting to know how much tax come from personal tax vs company tax... and I suppose, the contribution made by VAT, which let's face it, is largely just another personal tax.

Edited June 30, 2020 by davetapson

[intern]

Thoughts on the Greens' proposal to add more taxes for the wealthy?

 

For those who don't know, the rough idea of the proposal is:

• 1% tax on net individual wealth over $1,000,000
• 2% tax on net individual wealth over $2,000,000
• 2 new higher income tax brackets kicking in at $100,000pa and $150,000pa (currently the highest bracket is 33% which kicks in for income over $70,000pa).

aaaaand go!

 

Disastrous socialism which will encourage indolence and reduce productivity while driving 'the wealthy' away and providing ample work for tax accountants and trust lawyers.

 

The Greens have always been hard socialists first and an environmental party a distant second. This was highly apparent in the Metiria Turei era (though Russel 'give me my flag back' Norman is at least a real environmentalist), and even more so in the Davidson/Shaw era.

 

Oh, and for anyone who says 'yes I think it is a good idea to pay more tax, I am willing to do my part'? You are always welcome to pay the IRD more than it asks of you, so go ahead and lead by example, rather than legislating to force everyone to do what you won't do yourself without coercion.

[intern]

Before talking 'taxes for the wealthy', it is crucial to examine what 'the wealthy' means. In the mind of the socialist, 'the wealthy' got that way by exploiting the poor or being a leech on society ('taking more than they should/being greedy').

But look a bit closer. For the vast majority of 'the wealthy' (in parenthesis because the definition is fluid...when I was in my early 20s, someone earning R2000 was rich), they got that way by adding value to society. The more value they add, the more people are willing to hand over their money. Think about, say, Bill Gates or Jeff Bezos. People aren't lining up willingly to give them cash out of exploitation, they are doing so because Billy or Jeffy make their lives easier or better through the products and services they provide. Willing buyer, willing seller, no coercion here.

Seen this way, the wealthy aren't exploiting society, but instead are making society better through the goods and services provided, upon which indeed we all depend for our way of life.

Kick the wealthy out like Idi Amin did with the Indians in Uganda, and what do you have? Redistribution of wealth to the less fortunate? Not really. You have shortages, inefficiency, high prices, privation. Targeting the productive members of society in the interests of 'fairness' (fair to whom?) and 'equality' aren't new ideas. But efforts to solve these 'problems' have depressingly consistent outcomes. 

That incorrigible racist Winston Churchill probably said it best: "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery."

And of course, as Margaret Thatcher famously said in Parliament years ago, socialists "Would rather that the poor were poorer, provided that the rich were less rich. ... ... Yes, he would rather have the poor poorer, provided that the rich were less rich."

[patham]

Thoughts on the Greens' proposal to add more taxes for the wealthy?

 

For those who don't know, the rough idea of the proposal is:

• 1% tax on net individual wealth over $1,000,000
• 2% tax on net individual wealth over $2,000,000
• 2 new higher income tax brackets kicking in at $100,000pa and $150,000pa (currently the highest bracket is 33% which kicks in for income over $70,000pa).

aaaaand go!

 

Income tax is one thing. A wealth tax, especially one at that kicks in at that relatively low level, is a whole different kettle of fish.

 

Let's say you work your whole life, finally pay off your Auckland house worth $1M at age 50, so you just qualify for the wealth tax. If you live to 90, you need to find spare cash to the order of $400 K to pay in tax in order to have retained that asset and pass it on to your kids. That's a hefty inheritance tax. 

 

In any event, the really wealthy will just structure their accounts so that on paper they are only worth $999 k at any one time (or some flavour thereof, ala Dave King). The only people who will benefit are the tax accountants.

[intern]

Income tax is one thing. A wealth tax, especially one at that kicks in at that relatively low level, is a whole different kettle of fish.

 

Let's say you work your whole life, finally pay off your Auckland house worth $1M at age 50, so you just qualify for the wealth tax. If you live to 90, you need to find spare cash to the order of $400 K to pay in tax in order to have retained that asset and pass it on to your kids. That's a hefty inheritance tax. 

 

In any event, the really wealthy will just structure their accounts so that on paper they are only worth $999 k at any one time (or some flavour thereof, ala Dave King). The only people who will benefit are the tax accountants.

 

Yep. Put another way, wealth is what is left over after the living daylights was taxed on income.

[patches]

First world problems...

 

Chorus fibre ONT relocation costs... ouch!

 

I recently renovated my TV area and had to move the Chorus ONT. I did so muself as it only had to move 30cm away. It worked fine for a day, then bombed out. Chorus was there within hours (even during lockdown) and had it up and running in 15min. Win!

But now I'm moving on to renovating the area that I relocated the ONT to. Now it needs to be moved further (like halfway across the house) and this time there is a cost involved. $199. Yikes!

 

There is ample fibre under the house. I'm moving it towards the entry point (so less line needed), and it should take them about 30min max. But yeah, I guess the hefty 200 buck-a-roos is a first world problem.

 

Just wondered if anyone else had dealt with Chorus on this before.

 

*Apologies in advance to all the Aussies on this thread. You guys don't get proper fibre, only that bastardised and slow NBN nonsense    ...

 

...just take comfort in the fact that here in the South Eastern State we get reamed on EVERYTHING else compared to you guys   

Edited July 1, 2020 by patches

[intern]

First world problems...

 

Chorus fibre ONT relocation costs... ouch!

 

I recently renovated my TV area and had to move the Chorus ONT. I did so muself as it only had to move 30cm away. It worked fine for a day, then bombed out. Chorus was there within hours (even during lockdown) and had it up and running in 15min. Win!

 

But now I'm moving on to renovating the area that I relocated the ONT to. Now it needs to be moved further (like halfway across the house) and this time there is a cost involved. $199. Yikes!

 

There is ample fibre under the house. I'm moving it towards the entry point (so less line needed), and it should take them about 30min max. But yeah, I guess the hefty 200 buck-a-roos is a first world problem.

 

Just wondered if anyone else had dealt with Chorus on this before.

 

*Apologies in advance to all the Aussies on this thread. You guys don't get proper fibre, only that bastardised and slow NBN nonsense    ...

 

...just take comfort in the fact that here in the South Eastern State we get reamed on EVERYTHING else compared to you guys 

 

I wonder where you might find 200 bucks ;-)

[patches]

I wonder where you might find 200 bucks ;-)

 

hahaha! true! Easy come, easy go!

[patham]

 

 

*Apologies in advance to all the Aussies on this thread. You guys don't get proper fibre, only that bastardised and slow NBN nonsense    ...

 

...just take comfort in the fact that here in the South Eastern State we get reamed on EVERYTHING else compared to you guys 

 

One of my bugbears- NBN and telcos here in Aus are positively Telkom-ish, and I mean old-school monopoly Telkom.

 

The NBN used to have a Technology Choice option, where if you had a spare $10 k cash, you could cough up for fibre to your premises. That option had faded away by the time NBN came to my suburb, but I gather quite a few people paid that, and more (I think the highest personal install cost was $250 k). The only option for me was "take what's offered, otherwise you get nothing."

 

The best part of the NBN/telco handover was that I requested my home phone number be transferred to the new VOIP system that is part of the NBN. The system has given my a phone line that works, but has been assigned an unknown phone number. Not just unknown to me, but also the telco - they have not been able to tell me what it is. On the plus side, I can dial out without anyone knowing my identity, and there are no more surveys, spammers or scammers dialling in, as even random number generators have not cracked it.

[Steven Knoetze (sk27)]

So David Clark resigns, what a mess.

Will probably be used a the scapegoat for all the quarantine blunders now.

 

Then they replace him with the education minister, even less medical credentials.

WOW!!!

[hayleyearth]

First world problems...

 

,.....cost involved. $199. Yikes!

 

There is ample fibre under the house. I'm moving it towards the entry point (so less line needed), and it should take them about 30min max. But yeah, I guess the hefty 200 buck-a-roos is a first world problem.

[/size]

Good to know, I've been wanting to move ours but when I phoned Chores they said I must contact our broadband provider. Just haven't got to that yet

[hayleyearth]

Our little one just turned 2!!

And she's to big for her 1st bike now.

 

 

[patches]

Good to know, I've been wanting to move ours but when I phoned Chores they said I must contact our broadband provider. Just haven't got to that yet

 

Yeah, I'm with Bigpipe, and I just send them a request via their online contact system. They responded within about 2hrs and said the charge was $199 and if I was happy with that they would bill my account with them.

 

After I agreed to the cost, they booked the Chorus technician for Monday. So pretty speedy service.

 

The catch though is that the $199 is the base call-out fee. So in my case I should be fine as the relocation is simple and shouldn't require any splicing etc. But I have read other accounts where the bill hikes up into the $700 territory as modifications to the fibre are required.

[intern]

Good to know, I've been wanting to move ours but when I phoned Chores they said I must contact our broadband provider. Just haven't got to that yet

Chorus doesn't have any direct relationship with the customer, they serve the retailers - which is your ISP. That's why installs, even if pretty good, are still sometimes a nightmare, owing to the structure of the market.