If you have earnings of $1m / annum you get – according to the government – a tax cut of $985 per week.
How can that be fair.
If you have earnings of $1m / annum you get – according to the government – a tax cut of $985 per week.
How can that be fair.
This entry was posted on Thursday, May 20th, 2010 at 5:47 pm and is filed under minimum wage, national, Pay Equity, perks, poverty, Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
“..– the New Zealand government had little to do with it…” really. Does notthe NZ govt dictate what ratios of internally NZ sourced deposits, the value of NZ govt bonds and other controls?
Which has been changed (Not to sure if it was Nat or Lab). This is part reason why interest rates are so high compared with the OCR. There is a bidding war for NZ funds and that these funds must be for a longer term than was the norm. This is to stop what occurred in 08 when the banks had difficulty in sourcing funds overseas, remember they would not even lend to one another.
Time to slow down the flows of speculative “hot” capital.
NZ needs stable foreign investment in greenfields industries and capabilities, not foreign gambling funds which turn up one day and are gone the next.
Id love to be on $985.00 per week before tax.
Maybe thats what the goverment means, all those rich people are expected to use there tax reduction to employ 1 person.
This is not off thread Trevor because it is quite simply the common denominator that has the greatest impact upon our economic and social policy.
Come on folks, our tax system is a sieve all over the place. So lets try to simplify it, lets ask where does 60% odd of taxes go, they go to servicing debt, a debt that under the current monetary system is physically unpayable by mathematical formula. As more tax is avoided all over the shop, more is squeezed out of those that can avoid it least, if you have National in they don’t give a toss if those people suffer poverty among plenty, if Labour are in they subsidise those who are falling behind, either way only the bankers are smiling under the present system as their predatory system remains intact. Only fair way to reduce taxes is to reduce the impost of foreign financial intermediaries and their interest demanded as nothing more than tribute that adds 2-3x true value to anything we attempt to do, only way to do that is take up our sovereign right to issue our own credit in a productive manner, without interest attached, to unlock our own resources to create our own productive public assets that would back our own money supply. As our own money in circulation increases and is then used to pay down foreign credit money the taxes that were being collected to service the foreign debt can be reduced across the board in sync. An internally balanced economy with exports being a bonus as opposed to sink or swim yolk is surely much preferable to the speculative rollercoaster we suffer at present?
@waterboy: “Maybe thats what the goverment means, all those rich people are expected to use there tax reduction to employ 1 person.”
Indeed. A bodyguard or a barb-wire installer maybe?
I’m concerned that people aren’t going to get the message about how useless and misaimed this Budget is until too late.
The Herald is full of op-eds praising the damn thing.
Fran O’Sullivan even thinks that people will stay in NZ now because taxes are lower. (Funnily enough, if you read the comments ordinary punters have already seen through it – head across the ditch and pay a few more % in taxes: but get 25% more in pay to start off with – deal or no deal?)
Using the Internet is one way to disempower mass media bias, but at the end of the day, the mass media can’t be ignored as a way to get the message out there.
A problem.
Herodotus, there are two fairly recent factors – one the global credit tightening which cuts off supply and the RB move to a CFR (core funding ratio) which requires a higher ratio of local deposit funds – which encourages savings.
Loota, why not a FTT, so we can clip the ticket of those who want an overnight piece of our currency.
Hi Trevor,
I was having such a good run in getting posts up I didn’t bother to save the last one and what do you know it went to spam. If you find reason not to post it for me, could you please email it back, it takes a bit putting together evidence backed articles.
You guys did great getting public debt down, but all other sectors were going through the roof due to opening of the flood gates to direct foreign investment(private lending) which inevitably ends up in privitising the profits and socialising the losses.
You could stop the detrimental impact of speculators upon the real economy overnight by introducing capital flow controls, stipulate that any monies exchanged into Kiwi dollars cant be exchanged back out for minimum of 30 days. Bye, bye speculators hello legitimate longterm investors.
SPC – yep that would be a good step to take. Progressively implemented too – keep the currency in NZ only overnight and you get bitten, keep it here for 5 years and a zero rate applies.
(Just thinking off the top of my head here)
SPC,
FTT on every financial transaction ends up being a compounding tax unlike GST where businesses can claim rebates against any inputs gst has already been paid on, meaning only pay gst on value added part, FTT at every point would compound.
The claim that gst has no exemptions is not true either, the financial sector has been exempt from gst from very beginning. Remembering that when gst was first introduced the flood gates of foreign direct investment and financial deregulation had just been opened up as conditions of our refinancing after debt repayment crisis, thus real sector was still larger than financial quackery sector, financial sector said we wont claim gst on any real input materials if you exempt us of gst, deal done, the financial quackery sector now monsters the real sector, much of it electronically platform based, yet they remain exempt.
@loota @11.27 – Perhaps because most people actually believe it to be a very good budget.
Having Goff in the paper (not the front page mind you) saying that the adv family is $55 per week worse off – when all can see they will have more $ in their pockets is laughable – hell even our jnr staff here were asking what planet he is on.
Yesterday, National delivered the English Patient.
Very sickly, but unlikely to ever receive care in public hospitals now that doctors and nurses spend 50% of their time doing paperwork.
The opportunity cost of these tax cuts could have delivered a real, and necessary increase in health expenditure.
Now, people of the English Patient era and subsequent budgets will only get sicker unless they are fortunate enough to earn over the top bracket.
@Chris
After ECE is paid for which is going to go up and landlords increase rent, then I can see how people are going to be worse off. Maybe have more in their pay due to taxes but expences will be higher than the little bit extra that tax cuts will bring.
Chris – did you junior staff know how much they would be paying out on increased ACC levies, EFT tax, petrol tax etc etc or were they just basing their views on the Govt generated calculator which ommited these increases from their calculations?
I liken people’s reaction to the budget within 12-54 hours along the line sof a prosecutor closing their argument. Of course you think the defendant is guilty, you’re supposed to, their entire argument has been slanted that way. Then the defence begins its case…
Yes but the real question is: How many people earn $1,000,000 per annum, and even though they are paying less tax now, how much tax are they paying? Isn’t it better to have more higher earning people in New Zealand? Regardless of the tax rate, they still pay more tax to support the system.