Comments on: Alt B- The next generation’s budget

By: Sam

Sam — Sun, 16 May 2010 12:51:07 +0000

Disappointed I ran out of time to enter this. The winning entry looks like it’s dominated by the same old tired theory

By: John W

John W — Fri, 14 May 2010 14:23:18 +0000

Trusts are varied and to clobber an honest trust formed for good reason in a punitive way is nuts.

Trusts can be the only way to protect a parents responsibility to provide for children in many cases.

If a parent experiences family breakdown and re partners then the family home becomes relationship property unless protected.

Also is a child’s health is problematic any funds set to one side to cater for this also becomes relationship property. Superannuation similarly.

Trusts are often used to prevent injustice and distortion to existing family through re partnering. A block for gold diggers.

Also the family protection act can cut across provisions of a will through court action, and this may not be defended by the deceased.
A mine field which can only be negotiated by using a trust to secure such family assets – all fair and square above board.

Estate duty is still alive in NZ but the scale is set to zero currently.

Progressive tax is a far superior option and much fairer as high income comes from the society it is drawn from.

Incentive to save and work to provide for a family and pass left overs onto the next generation has no negative consequence for anyone.

The accumulation of gross wealth as we have in NZ where a tiny percent control the majority of wealth is a different matter to inheritance. They should be dealt with separately.

The big questions need courage to answer and the public do not have the stomach to make the changes.

We are subservient to aggressive aggregation of societal wealth by a tiny group. They have power to manipulate through gradual change in one direction.

By: Spud

Spud — Fri, 14 May 2010 10:43:48 +0000

Aw, inheritance tax is mean

By: SPC

SPC — Fri, 14 May 2010 10:19:57 +0000

The winners was a more serious effort than the one coming out next week.

But an inheritance tax at that rate could result in both the wealth and the heirs leaving the country (sell up take all the wealth to OZ and die there and pass on the money without the high 40% tax) better to have one, if one does, at a lower rate say 15%. The principle of broadening the base (CGT etc) but not having rates which incite avoidance is sound.

I favour a higher 20% GST on discretionary spending (better encourages the alternative to save) and 10% on necessities (reduces poverty) to a flat rate of 15%.

By: Loota

Loota — Fri, 14 May 2010 06:02:47 +0000

Jammy said

Loota, it was the Converse 2010 Youth Summit. Nicky Kaye was there, neither Jacinda or Phil were to be seen.

Hmmmmmm I suggest they make sure they get invites next time and it gets diarised.

By: Spud

Spud — Fri, 14 May 2010 05:47:03 +0000

@Tamati – Hell yes!
@Tracey – Yeah Jacinda does get talked over

By: Herodotus

Herodotus — Fri, 14 May 2010 04:38:23 +0000

Tracey I take it you have viewed quite a few trusts. I was wondering how many trusts are untested. That is they are trusts by name but the actions of the trustees/beneficaries make them technically invalid as trusts. But like property speculators the IRD does nothave the resources or the will to test. Or if not the IRD then whatever govt dept, e.g the respite care and who pays for this as the so called assets that are protected by the trust is not really a trust. I hope this is not too vague?

By: Tracey

Tracey — Fri, 14 May 2010 04:35:02 +0000

Jacinda, do you ever get frustrated by the armchair ride Simon Bridges gets from Paul Henry, including letting him talk over you and or longer and son?

By: Tracey

Tracey — Fri, 14 May 2010 04:32:41 +0000

Trusts are a nightmare and most are pseudo trusts insofar as the beneficiaries are also trustees with full signing authority. It used to be that you at least had to have the appearance of being arms length from what was your money, and now belongs to “the trust”. A Trust is inanimate and accordingly it it run by humans called Trustees. I come across mirror trust arrangements regularly int he upper middle class and higher brackets. I have yet to see a (so-called) working class couple with a mirror trust.

By: Jacinda Ardern

Jacinda Ardern — Fri, 14 May 2010 04:32:36 +0000

@Jammy June I was really sorry to miss the Summit. It was scheduled for a few weeks back (from memory) and I was down to take part in a panel, but unfortunately the organisers had to move the date and it fell in the middle of our Labour caucus meeting in Nelson. I’d love to hear the outcome if you want to share? Otherwise I’ve been trying to stay in pretty close contact with various Youth Councils on what their expectations are for the final bill. I have quite different views on this than Nikki and others (as I understand from the Select Committee submission process). I believe young people’s participation in the new super city should be entrenched in the primary legislation- it’s too important to leave to chance.