Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Wealth Tax - Labour / Greens -

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Wealth Tax - Labour / Greens -

    Not this term / But Policy for their next term (From our nice socialist / communist masters)

    Okay so if National dont get in 2023 or 2026 then we will have a Wealth Tax of some sort that David Parker is setting the ground work for.

    https://www.newshub.co.nz/home/polit...ealth-tax.html

    The plan will look something like this, basic Scenario.

    Mum and dad investor has own house and 2 rentals and a car and a boat so lets say 5m total Assets.
    They work hard and owe the bank only 1m and either intend to keep one for retirement savings and live off income or sell at some point.
    Hand one down to the children.
    That 4m equity is taxed at say 3% which is $120,000 per year forever or $2,400 per week tax.
    Take that on top of current property investments where you are already paying tax as you cant deduct interest costs.

    Nice, great incentive to get ahead in life, obviously they want everyone to be employees of the state and get our daily peasant rations, like the good peasant slaves they want us to be.

    But, regardless, lets thinks this through, as we obviously need to start planning now to avoid this if possible, what are the options, lets brainstorm.

    1. Move assets Offshore as my friend is doing - selling residential housing here and buying in Costa Rica - does this work.

    2. Residential Properties in Trusts that are for your children - does that help at all - likely not.

    3. Business ventures - selling residential and buying a business or you already have one - are you going to be paying 3% tax on the equity in a business as well -as that is wealth.

    4. GST registered business that buy and sell property - could be better cashflow wise paying tax on profits made at 33% - instead of being hammered 3% every year on percieved wealth.

    5. Gifting a 1 Millions dollar property to a teenage child - how does that work, is the child now paying the 3% tax instead ?

    6. Commercial property - is this the solution and where larger longer term investors end up eventually anyway. What are the experts views on this one, I think it works.


  • #2
    No country has managed to tax the Uber wealthy in the 50million dollar plus club.

    You can only achieve a wealth tax by means of a capital gains tax, which the Ardern government has ruled out.

    And you can't tax unrealised capital gains because most wealthy don't earn as much as there appreciating assets Property/Business/Shares/commodities.

    The only way to tax the capital gains is when they sell or:

    Force the individuals to sell, which would make matters worse by collapsing the housing market, sharemarket and commodities market and obviously the economy.

    (If all rich pricks were forced to sell at the same time , well you can figure out the rest...)

    So chill, your making us landlords sound uncool...




    Last edited by Jeffa; 03-05-2022, 02:14 PM.

    Comment


    • #3
      I will let you know when you start sounding cool

      Comment


      • #4
        Yeah stranger things have happened but that would madness. Has or is it happening anywhere?

        Cheers
        Donna
        SEARCH PropertyTalk, About PropertyTalk

        BusinessBlogs - the best business articles are found here

        Comment


        • #5
          Anyone earning $70K+ is "uber wealthy" in NZ.
          The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

          Comment


          • #6
            Originally posted by Jeffa View Post
            No country has managed to tax the Uber wealthy in the 50million dollar plus club.

            You can only achieve a wealth tax by means of a capital gains tax, which the Ardern government has ruled out.

            And you can't tax unrealised capital gains because most wealthy don't earn as much as there appreciating assets Property/Business/Shares/commodities.

            The only way to tax the capital gains is when they sell or:

            Force the individuals to sell, which would make matters worse by collapsing the housing market, sharemarket and commodities market and obviously the economy.

            (If all rich pricks were forced to sell at the same time , well you can figure out the rest...)

            So chill, your making us landlords sound uncool...



            The threshold of $50m pa of income being considered ultra wealthy by the IRD is set ridiculously low .
            ​​​​​​On this site alone I suspect there are a thousand plus earning that amount.
            ​​

            Comment


            • #7
              A wealth tax incentivises high risk activities... Own $100m of property make sure you have $98M of debt against it. Own $250M of property make sure you have $248M debt against it.

              With that level of assets - not wealth as your debt is also high, you make sure you don't have a wealth tax to pay.

              A wealth tax will only make Accountants and Lawyers wealthy

              Comment


              • #8
                ^^ ok so that’s the blueprint we all need to use if it comes in.
                SEARCH PropertyTalk, About PropertyTalk

                BusinessBlogs - the best business articles are found here

                Comment


                • #9
                  If Labor and the greenies win the next election there will be a mass exodus of money out of NZ.

                  Comment


                  • #10
                    ^^ and high value workers too.
                    SEARCH PropertyTalk, About PropertyTalk

                    BusinessBlogs - the best business articles are found here

                    Comment


                    • #11
                      Hi,

                      Will this apply to permanent residents also? Because the person can move back to their country of citizenship and bringing their wealth with them.

                      Comment


                      • #12
                        Originally posted by Bluekiwi View Post
                        But, regardless, let's thinks this through, as we obviously need to start planning now to avoid this if possible, what are the options? Let's brainstorm.
                        Tis said that the best form of defence is attack. And the best way to attack this sort of nasty, multiple-failures-cover-up-attempt, shameless government greed and envy is to ensure it doesn't happen.

                        My memory on it is very hazy. Others will fill in the gaps. Last time the greens-with-envy crowd tried something akin to this, didn't the opposition 'labour' the point that nearly everyone's home that was in a family trust would be snared? Somesuch, anyway. Find a way to seriously 'spook' home-owning socio-commie-labour-green supporters by saying (if valid) that such a policy would 'capture' their family home and so will be snatched from their children by a rapacious and greedy gummint.


                        Last edited by Perry; 18-05-2022, 06:14 PM.
                        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                        Comment


                        • #13
                          Originally posted by Perry View Post
                          [...] Find a way to seriously 'spook' home-owning socio-commie-labour-green supporters by saying (if valid) that such a policy would 'capture' their family home and so will be snatched from their children by a rapacious and greedy gummint.
                          Green Party Wealth tax policy captures the family home. Clowns. Net wealth (including the family home) over 1 million would be taxed 1% annually. Net wealth over 2 million, 2% annually. Helpfully, they've suggested tax can be deferred until the asset is sold.

                          Comment


                          • #14
                            "Clowns" just doesn't do 'em justice, Sanya.

                            A moment's reflection reveals exactly the same flaw as CGT.
                            A pseudo wealth tax gives the gummint a vested interest in increasing inflation.
                            Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                            Comment


                            • #15
                              I wish I could change the spelling error in the title.

                              Comment

                              Working...
                              X