Tax Working Group Report & Related Matters

[Perry]

Studied Ignorance

Perry - here is the background to the pimp reference.

I am all-too-well-aware of the bastardisation of our English language.

I do my best to use the right word in the right place and commend that notion to others.

pimping = arrange for sexual partners for others

primping = careful or finicky grooming

Reminds me of USAnglish where the ignoramuses of that country don't know the anatomical differences between a four and two-legged beast.

ass = hardy and sure-footed animal smaller and with longer ears than the horse, or, a pompous fool

arse = rump or buttocks, being the two-part fleshy part of the human body that one sits on

[Perry]

Inheritance tax good economics, and the politics may be better than they seem
7 Aug 2018

Inheritances taxes have several advantages over a capital gains tax – or over other types of wealth taxes which have not been ruled out by the Government. From an administrative perspective, people only pay them once, rather than every year. From the Government's point of view, the tax revenue they generate is more stable, whereas capital gains taxes mainly raise money during the good times when it is less likely to be needed.

Inheritances taxes are fairer than annual wealth taxes and capital gains taxes, because they tax the sum of the "snakes and ladders" in life, rather than only the "ladder" years. Yet the disincentives they create for wealth creation are less immediate than for any other type of tax. It would be equally possible to exclude "the family home" from an inheritance tax or a capital gains tax.
But it would be easier to include family homes in an inheritance tax – perhaps with a separate tax-free threshold as in Britain – since homes tend to be sold when estates are settled.

As with councils, it's always the same: how can we screw people more. Never, how can we spend less and/or be more cost efficient?

[Bluekiwi]

Inheritance tax good economics, and the politics may be better than they seem
7 Aug 2018


As with councils, it's always the same: how can we screw people more. Never, how can we spend less and/or be more cost efficient?

A lot of people have had enough of this new direction the country is going.

[Wayne]

Inheritance tax good economics, and the politics may be better than they seem
7 Aug 2018


As with councils, it's always the same: how can we screw people more. Never, how can we spend less and/or be more cost efficient?

Seems to me that the thing with 'spend less and bee more efficient' is that they then think 'Oh look at the extra money we can now spend' and off it goes again.

[eri]

Seems to me that the thing with 'spend less and bee more efficient' is that they then think 'Oh look at the extra money we can now spend' and off it goes again.

+1.................

[Nikau Valley]

Tax Working Group

Have I missed something? Is the TWG Interim Report and its proposals that could completely destroy us being discussed somewhere else on this forum?

I keep emphasizing on any sites available (e.g. Stuff) that house prices aren't any real 'gain' but just housing inflation. But too few kiwis seem to get that. They see a year of high housing inflation and feel hard done by. Never mind all the years of deflation or flat house prices long term investors have gone through.

What do you all think? Is there any hope?

[Nick G]

I think it's because nobody is surprised and nobody thinks Labour will back a CGT unless they don't want to be the government anymore.

How do you think CGT could destroy us?

Personally I'm more concerned with DTI and Wealth Taxes, which while that got a mention... we saw how few voted for TOP.

[eri]

all in the 212 pages of

the capital gains thread

https://www.propertytalk.com/forum/showthread.php?585-Capital-Gains-Tax-Keep-related-posts-in-this-thread-please/page212

[Nikau Valley]

Thanks Nick, yes I meant a broader concern when I said CGT. Land tax, wealth tax any Robin Hood tax they want to shove down the throat of hardworking kiwis who have managed to save a bit of a nest egg.

But yes, CGT would certainly destroy me financially if it was annualised as a 'wealth tax' or if I needed to sell and then be unable to buy another property.

I hope you're right about them not daring...

Sorry Eri, I'll go to the other thread now.

[Perry]

Have I missed something?

Quite possibly.

But you should be in the right discussion thread, now.

[Perry]

That was actually the original plan for Fringe Benefit Tax..

You got paid $x in money and received non-cash perks valued at $y.
Add the two together, that was your total remuneration, and you paid income tax on that total.
That way makes sense.

Then, just to see how it went, someone idly ran the figures over a parliamentary Ministers total remuneration package and found - shock, horror! - that their FBT payment would in some cases actually be higher than their cash income.

So the onus of payment was hastily switched from the employee to the employer.
Whew, disaster averted.
The Government pays itself tax on its employees earnings.
Welcome to mickey-mouse-land.

Peter

Do you have any references (relating to what you said) which I could use?

[flyernzl]

Sorry, way too far back in history to track anything now.
I suspect it was in a political comments column in the Herald years ago.

[Perry]

Cloud Cuckoo Land Logic

Bugger! Wonder if an Internet search would show that matter up?

What prompted my question was this item.

Seems that the w'gton woodenheads are exempt from the "tax cheats" label.

Of course, the mention of "hospitals, schools and national parks" diverts attention from MPs spouses' taxpayer-subsidised air travel, ex-PM taxpayer-funded perks, MPs taxpayer-funded gold-plated superannuation, and so on. None of which are subject to FBT, as would occur in the real world.

And - of course - the IRD collects real money from real peoples earnings to pay their own wages and salaries!

Independent and objective?

Yeah, right.