we can't be scared of change if it helps us become a more productive country.
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Tax Working Group Report & Related Matters
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I agree that mowing one another's lawns
caring for one another's kids and housing
one another does nothing much for our
overseas debt.
However, whatever we do 'produce' that
can be exported needs to be needed and
needs to be paid for. And Ladas for butter
just wont cut it, this time round.
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Originally posted by Austrokiwi View PostWhat about the tax paid by banks on interest.
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Originally posted by Perry View PostWith all the banks coughing up mega-bucks as a tax catch-up, the TWG can contemplate their dubious pronouncements for another year or two, at least. (Nearly a billion from Wesux, alone.)
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Broadening the tax base
Where was the work on updating the tax system when the economy was doing well. As usual the review that is occurring, may have been discussed for many years but only when the gvt faces reduced revenue is anything done. Despite the rhetoric about fairness the issue for the gvt and treasury is how much money they have too spend.
I am sure that once the review has been completed the gvt will accept the recommendations that increase cash flow and will, at best half heartedly apply the recommendations that allow for long term growth.
I am going to be a little repeatative. Governments should only increase taxes when the economy is doing well, when it is faltering that is when the government should be providing tax relief and using the stores from the good terms to see the country through the bad. But of course when a political party is in the drivers seat and the economy is doing well it is better for that party to spend the extra income so as to buy the votes for the next election:
The tax system that I believe would grow New Zealand as an economy:
- No personal tax, ie: get rid of Paye.............business's would benefit from reduced administration costs and the size of IRDs Beuracracy could be reduced substantively.
- Consumption tax increased to 20%
- Company tax set to 33% while penalties for tax avoidance are increased massively. IE; set the level of company tax so that avoidance is seen as too risky to attempt( with no personal tax CEOS would be encouraged to play the game.
- Get rid of the ridiculous rules on foreign share ownership. Nrs owning foreign shares increases NZs earnings of foreign captital.
- Adress the welfare budget by switching, through a grandparenting process, the unemployment benefit to Unemployment insurance. Make doctors liable for costs if a sickeness benificiary is found to have been malingering for financial gain.
To some this might seem madness but if you study the history of taxation you will see that City states/ Nation states have propered and grown when taxs are low.The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.
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Most people will be aware of the current IRD versus the Banks tax cases and the resultant loss by two major banks to the IRD. It transpires that Westpac were advised, according to reports, by this person.
John Shewan, PricewaterhouseCoopers Top man and Chairman of.
Now in the list of members of the TWG I see his name is listed.
The TWG, which comprises individuals from the private sector and
academia and also includes tax policy officials from the Treasury
and Inland Revenue, has the following membership:
Bob Buckle, Faculty of Commerce and Administration, VUW (Group Chair)
Rob Cameron, Cameron Partners
Paul Dunne, KPMG
Arthur Grimes, Motu Economic and Public Policy Research
Rob McLeod, Ernst & Young
Gareth Morgan, Gareth Morgan Investments Limited
Geof Nightingale, PricewaterhouseCoopers
Mike Shaw, Deloitte
John Shewan, PricewaterhouseCoopers
Casey Plunket, Chapman Tripp
John Prebble, Law School, VUW
Mark Weldon, NZX Limited
David White, Centre for Accounting, Governance and Taxation Research, VUW
as a member of private business groups.
This is the person who is reported to have advised Westpac that they should only pay a minimum amount of tax (6% and 12% have been mentioned.)
I don't have a problem if that figure is for everyone and indeed would applaud it but I don't believe that was his intention and the court has ruled that the exercise was an attempt to deceiveabout the tax to be paid and was against the law,and now after his clients losing in court he is still on an advisory committee.
Something doesn't seem quite right here.Last edited by Viking; 09-10-2009, 07:23 PM.
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Originally posted by Perry View PostJeees, Austro: doctors are nearly all struggling under
a massive gov't, ACC et al bureaucracy burden, now.
I missed out a point get rid of ACC and bring back the right to sue ( have I spelt that right) There is always fear mongering that we will bring a US based litigation system. The UK and nearly all European countries have the right to Sue and they certainly don't have the outrageous litigation that is seen in the states.
getting rid of ACC would also save on Gvt costs: take the Swimming pool fencing legislation there are huge compliance costs involved and there were many years of political discussion (and expenditure) before it was introduced. If ACC had not been in existence, one or two court cases would have established the common law principles that swimming pool owners would take notice of.
ACC was good but the gvt has watered it down so much, with out returning legal rights back to NZers.The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.
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Originally posted by Austrokiwi View PostACC was good but the gvt has watered it down so
much, without returning legal rights back to NZers.
than a few have somewhat acerbically ob-
served, in such forum discussions.
Despite suggestions of 'use your vote' by
certain PT forum members, the amount of
regard had to the results of NZ's referenda
to date is ample evidence of the futility of that.
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Maybe this excerpt offers a better glaring hole to plug?
Originally posted by StuffMedian Incomes Barely Changed
08/10/2009
Median weekly incomes barely changed in the year to
June, but with the economy mired in recession more
people received income from government transfers and
fewer from self-employment.
Since the June 2008 quarter, the number of people
receiving income from government transfers had risen
33,700 or 3.2 percent, while the number of people
receiving income from self-employment dropped 8.9
percent or 34,100.
Government transfers include sources such as benefits,
student allowances, ACC, New Zealand Superannuation,
veteran and war pensions, and tax credits such as Working
for Families.
Median weekly income from government transfers was up
$18 to $273, with the number of people receiving
government transfers in the 65-plus age group up 13,900 or
2.9 percent.
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I wonder if the working group is also looking at other black holes in the tax economy. Like, oh, illegal drug trafficking. And the cashie economy. Even if they are, I bet they are not putting as much effort into these sectors as they are a whole lot harder to catch and tax.
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NZ needs LESS tax not more of it.
Where is the working group on that?
Where is the working group on trimming the fat?
Where is the working group on how to make NZs wealthier?
Bah Humbug!Last edited by PC; 12-10-2009, 04:23 AM.The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.
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