Wealth Taxes

[Minimoke]

https://www.nzherald.co.nz/nz/politics/wealth-tax-hikes-will-pay-for-income-tax-cuts-and-welfare-overhaul-greens/FCRYI5THFVECPNUS2IB2N7REWA/

Hard to comment further without knowing what's excluded from their envy tax.
What I will say is this, I have seen farms that make less than a net 2.5% return on their market value when all costs are taken into account.  So where does the farmer with a $10m farm get his $250,000 from to pay this envy tax?

These guys appear to want to create some form of utopia where we basically all live in a commune sharing our resources, a place where we pay people to breed and reward them whether they work or not.

1.5% tax on all assets in a Trust...gosh that's going ruffle more than a few feathers.

Looking good for accounts though. They will be able to start working on how to come up with all sorts of new valuations of worth for things.

[Untamed]

PLEASE don't go down Balance's road Basil. This generalised beneficiary bashing is unfair, not to mention offensive and hurtful to many decent Kiwis who have, at some point in their lives, needed assistance. The vast majority of beneficiaries feel bad enough about that, without having to deal with the never-ending bashing.

You are better than that.

a place where we pay people to breed and reward them whether they work or not.

[Breezy]

Interesting. I think a wealth tax is coming to NZ, Just a question of timing.

A wealth/envy tax is a complete brain dead idea which has been proved by overseas experience, most countries have ditched it because it doesn't work as intended. No surprises that a financially inept Green Party want to introduce one. Personally it won't affect my wife and I at their proposed levels, it would have 3 yrs ago but those days are long gone, sometimes less is more.

[arekaywhy]

...This generalised beneficiary bashing is unfair, ...

You have to admit, it is really hard not to think that when twits in Wellington start showing their (Red) colours

[Waltzing]

RED colors....

yup they need to change the color of their party flags ...  who would vote RED!!!

maybe Purple ?

RED now equates to Commu.... that word....

[KW]

These guys appear to want to create some form of utopia where we basically all live in a commune sharing our resources, a place where we pay people to breed and reward them whether they work or not.

Labour is already doing that now.  They pay a benefit to a single parent for three years now, with no requirement to look for work. Whereas a partnered woman only gets paid 26 weeks maternity benefit, and is expected to return to work after 12 months off (assuming her employer is generous enough to pay the other 6 months maternity benefit).  So women are now far better off ditching the husband and the job and having babies on the benefit. Plus they get all the child support payments now, so even more financially beneficial if you ensure each kid has a different father. 

Also note that Maori owned assets will be exempt from any taxes.  

[Minimoke]

Labour is already doing that now.  They pay a benefit to a single parent for three years now, with no requirement to look for work. Whereas a partnered woman only gets paid 26 weeks maternity benefit, and is expected to return to work after 12 months off (assuming her employer is generous enough to pay the other 6 months maternity benefit).  So women are now far better off ditching the husband and the job and having babies on the benefit. Plus they get all the child support payments now, so even more financially beneficial if you ensure each kid has a different father.

Also note that Maori owned assets will be exempt from any taxes. 

So will charities. Just off to setup the "Minimoke Charitable Trust"

[Basil]

Here's the whole thing with lots of worked examples.
https://assets.nationbuilder.com/beachheroes/pages/17574/attachments/original/1686379147/Tax_Full_Policy_Document_v4.pdf?1686379147
I'll give an example.  Jack and Jill have worked hard all their lives.  Jack is an electrician working on his own and Jill has brought up their 4 kids who have all now flown the coup.
They have a nice $1.5m property in their family trust they've put there on the advice of their accountant to protect their family home if something went terribly wrong with their business.  They now face a punitive tax of 1.5% on the full value of their home, $22,500 per annum because they had the foresight to pay it off fully.
Additionally, because their business is quite profitable and owned in a company they will pay more tax under these changes.  Jack and Jill never qualified for working for families in their life because they worked hard and always believed if you chose to have children it was your own responsibility to pay for the cost of bringing them up.  Jack and Jill feel so aggrieved with the extra total tax impost of $30,000 per annum that they are now expected to now pay the cost of bringing up other people's children.  They have decided to sell up and move to Australia.
Jack and Jill will be just two of tens of thousands if their wealth tax ever sees the light of day.
Māori assets not being liable is outright reverse racism.

A fairer more progressive tax system or a version of Communism?  The voters will decide in October.

[Shareguy]

What does Australia do

https://taxsummaries.pwc.com/australia/individual/other-taxes

[KW]

What does Australia do

https://taxsummaries.pwc.com/australia/individual/other-taxes

In Australia, you set up a self managed super fund and you use that vehicle to hold company shares and investment properties.  Rental/Dividend income is taxed at 15% and capital gains are taxed at 10%.  I have a wealthy friend in Australia with over a million a year in income, on which he paid $11,000 in tax due to distributing the income via his family super fund.  He was bummed out that he couldnt get rid of that last $11k 

[Waltzing]

He should try the UK tax system... and its probably what Lab/Greens want here and it will require thousands of accountants to add to GDP....

This articles describes its best for how the parties see it.

https://www.stuff.co.nz/national/politics/132308266/why-christopher-luxon-may-ride-the-whinging-wave-all-the-way-to-the-beehive

[KW]

He should try the UK tax system... and its probably what Lab/Greens want here and it will require thousands of accountants to add to GDP....

His worst nightmare was Labor abolishing the cash refund of franking credits on dividends .  This is where dividends are received by people on a lower tax rate than the company one, so they get an IRD refund cheque.  Fortunately the Labor Govt saw the loss of baby boomer votes on that one, so they scrapped it. 

[Waltzing]

Yes we have a special class of software that records dividends and the components in our Journal entity modelling system.

What lay people might call an accounting system... but wait its not really...smoke and mirrors.

"cash refund of franking credits on dividends"

nightmare ...... Financial Accounting is just beyond the average elected MP who has never balanced a cashbook with pencil and paper...
 

[Waltzing]

Whoops the IMF has something to say to NZ Inc.

https://www.nzherald.co.nz/business/imf-calls-for-tax-reform-and-more-disciplined-govt-spending/ML77EJYGIZDN7L4XB4AOHQDQCA/

Chris Papageorgiou a guy who does theory balance sheets for countries where who cares if a land tax is impractical and causes a whole lot of mis valuations taxes that are less than accurate.

Its like taxing a river where the flow changes due to global warming.

It looks like it a static assets but you can never value it accurately cause actually its a moving target and accounting  ledgers for it dont exist.

Taxs add regulation and increase engine friction. Less friction is a smoother economy running faster.

https://www.youtube.com/watch?v=nP0v4lL_rZw   

Scrap the AML laws and add transaction identification certificates at the base banking transaction HUBS ... DA!!!!

[Sideshow Bob]

Ian Taylor's open letter to Chloe....

https://www.linkedin.com/pulse/openl-letter-chl%2525C3%2525B6e-swarbrick-ian-taylor-%3FtrackingId=2h4N8IXRRlyeMlcSmeAwvw%253D%253D/?trackingId=2h4N8IXRRlyeMlcSmeAwvw%3D%3D