New Wealth Tax

[Sanya]

Greens Proposed Wealth Tax

Wow, what are your thoughts people!

A 2.5% Wealth Tax on assets - things like properties or shares - worth more than $4 million (minus mortgages and other debt) for couples and $2 million (minus mortgages and other debt) for individuals. This will not affect most family homes or retirement savings.

A Trust Tax of 1.5% so people cannot just move their money into a trust to avoid the Wealth Tax. No Threshold on net trust assets so a $1M family home in a trust will pay $15000 annually in tax.

A new top rate of income tax of 45% on income over $180,000, so the top earners contribute more

A new corporate tax rate of 33%, returning corporate tax to what it was before National came into government in 2008.

[donna]

I've moved your post into a new discussion - as it is topical and we don't want it lost among the other discussions.

Yeah - it is $2m net (so this is after loans) or for a couple $4m net. However the trust tax - if it is on family trusts with the family home in it is communism - I say!

I can not imagine how many people would have a family trust with their family home in it. There's no way it should be taxed - especially not on unrealised gains - that's outrageous.

cheers,

Donna

[Sanya]

^^ Agreed.

Many families and in some cases small business owners will have set up Trusts to protect assets.

Green's proposal to tax the net assets of Trusts at 1.5% annually - whilst clearly targeted at the rich per the IRD report - will in fact hurt many ordinary kiwi's.

[Perry]

However the trust tax - if it is on family trusts with the family home in it is communism - I say!

Of course! What do you expect from a socio-communist party like the once-were-green-warriors?


Ponder this: One half of a couple dies. The 4M drops to 2M and the widow / widower is faced with a great mourning bill from the Red grifters.

Perhaps the only good thing about this is we may see fewer Reds in parliament, after the GE.

[Sanya]

Perhaps the only good thing about this is we may see fewer Reds in parliament, after the GE.

Indeed! The Green budget to collect $12B in 2024/25 in additional tax revenue from taxing wealth including wealth in family trusts.

A vote for the REDS is a vote for the GREENS so lots of REDS supporters will be privately worried about taxing unrealized gains in their family trusts.

We await the REDS tax policy which perhaps will also tax unrealized gains. See https://www.propertytalk.com/forum/f...realized-gains

[donna]

What’s more all properties are taxed already - it’s call local government taxes aka rates! I’m upgrading my earlier comment from ‘communism’ to ‘theft’.

Not all trusts should be treated equally. A family discretionary trust should be hands off! A trading trust is fair game.

[donna]

IMF wants NZ to do more to reduce its debt....

reduced petrol tax rate should be allowed to expire as planned at the end of this month

(doesn't like proposed tax reform - is suggesting.....)

broader capital gains and land taxes could allow for lower corporate and personal income tax rates.

(stop increasing min. wage unless productivity improves...)

discouraged further increases to minimum wage - changes should be aligned with productivity growth to avoid inflating overall wages.

(raise the retirement age.....)

support for retirement reform with a warning that it would be challenging to fund public pensions from current revenues as the population ages.

[Perry]

Nowhere is the obvious mentioned: REDUCE GUMMINT EXPENDITURE!

So less tax is required.

I wonder how much we'd save if we ditched half the MPs?
The remainder might even actually do something useful.
Think of the reduction in support costs, too.

[Crookie]

not a bad idea, quick calculation shows we have roughly 1 MP for every 42,000 people, UK has one for every 103,000!

Bizarrely it looks like NZ Prime Minister is paid more than the UK Prime Minister as well!

[donna]

^^ Yes we’re too heavy - and job cuts need to happen in Parliament. These highly paid people could be contributing to the Economy working in the private sector. But that would be real work - not sure it would appeal the career politicians.

cheers

Donna

[Perry]

It's been said before, but many of these incumbents are career woodenheads. From university, to a gummint funded organisation, to a political party electoral office, then to the same party's parliamentary office, then on to the List for a GE.

No real-world experience of any sort. Neither had nor required.

Councils are similarly afflicted. Often with the dross discarded from parliament.

The local Regional Council is an example.

[Perry]

I'm far from alone in thinking that . . . .

For nine years, between 2008 and 2017, Labour MPs failed to work on policy development and had to establish more than 200 committees to devise policies when they were surprised to find themselves in office. Scarcely a one of their MPs has ever worked at a real job or demonstrated any administrative skill. They can move their feet, however, as they skip deftly from cow pat to cow pat, splattering us and themselves as they do so.

[flyernzl]

Of course these proposals make exactly the same mistakes that are now being roundly condemned in regard to income tax levels - tax creep.

I can remember long ago when the most expensive house in Auckland, on Paratai Drive, was being advertised - $41,000
Everybody knew that was a stupendous sum.
If a wealth tax had been imposed back then no doubt it was have been set a a similarly unimaginably huge sum, say $200,000
Fifty years later that $200,000 wont even buy you a hen-house.

If they set any wealth tax at $4mil or $2 mil then, given enough time and inflation, that amount will be an average annual income.

The levels should of course be set in relation to a multiple of something that will inevitably also inflate over the years - I would suggest setting it to a multiple of a politician's salary.

[JBM]

Nowhere is the obvious mentioned: REDUCE GUMMINT EXPENDITURE!

So less tax is required.

I wonder how much we'd save if we ditched half the MPs?
The remainder might even actually do something useful.
Think of the reduction in support costs, too.

The number of bureaucrats has also skyrocketed by 14,000 since 2017 when Labour came to power. That increase comes at a substantial cost to the taxpayer, with an additional $1.8 billion added to the Government’s wage bill.

“Despite that, spending on contractors and consultants also rose from $896 million in 2018 to $902 million last year....

the utter waste on the masses of bureaucrats last 6yrs has been the biggest waste of OUR TAX dollars in the History of NZ .. what have these bureaucrats achieved for our nation?? over these 6yrs of work what ?????more ideas to fund even more working groups ..just look at the GOVT muppets at the present every week a new plan to then push towards working groups to waste even more of TAX payers funds..

imagine if instead of investing into looney lefty idealism social engineering , net zero ,+ doz over issues are GOVT has been trying to solve through talk and study groups ... trips around the world talking with other looneys

had they actually invested in driving real investment in the country through more engineers more skilled labour works ...big insfurstrure projects

driven muti sectors primary to secondary downstream growth to diverse our economy ...from present the milk powder/real estate/tourism pumps/bureaucrats

... Backed smarter farming / fishing / forestry/ mining /energy ...

and a key one for any nation is lower cost ENERGY ... we had a high tech OIL refineries our anti-Fossil fuel GOVT made sure an even increasing TAX/REG/LAWS would push offshore.... (previous GOVT sold much of our ownership of power generation)... talk about putting our nation at the mercy of foreign interests

NZ has massive O&G prospects that we could have developed through International energy partnerships over the last many years .. but instead our GOVT went the other way and wants only renewable utopia...

In the US consumers pay in NZD $1.85 per litre for GAS and they complain about that HUGELY!!

NZD $4lt Petrol is coming this summer IMHO...

[donna]

^^ here here well said and watch how they ram through the unwanted new laws including lowering the voting age so they can bride 16 and 17 year olds to vote for them.