FT: New Zealand eyes income tax cuts

[Kiwi Mac]

Ok, and to add more to the equation, then everything I buy in NZ is subject to 12.5% GST at present, so in simple terms 5% cheaper than the 17.5% I pay in VAT for most goods. Petrol duty is a different league in the UK to NZ. Also I pay £1000 per annum on car insurance with 9 years no claims , I very much doubt that would be the case in NZ.

I've tried to keep this to direct tax issues, and I 100% appreciate that there's a lot more to this. But it's a discussion forum, and by me selecting these things to 'prove' my point it means that someone else can be selective in choosing other things to prove theirs

You'd probably pay around $600 for fully comp on a decent motor here.

[Jolie]

An informed decision is to pay zero tax if you can get away with it. The concept of voluntarily paying it is so alien to my mind I cannot begin to comprehend it.

Yes, but that assumes that you are willing to put up the amount of time, research, and grief involved with accomplishing it.

Frankly, the salary difference between FTE and contract would have to be a HELL of a lot higher to make it worth all the additional time, effort, paperwork, and aggravation I would have to go through to get it.

Instead, I spend my weekends scuba diving and doing other adventure exploring in this incredible country, rather than sitting at home crunching numbers and filling out paperwork.

And it's TOTALLY worth it.

[Mamee & Co]

Originally Posted by Kiwi Mac :-
An informed decision is to pay zero tax if you can get away with it. The concept of voluntarily paying it is so alien to my mind I cannot begin to comprehend it.

But if everyone is on a position to pay zero tax who is going to provide the services that benefit the population as a whole? Or do we lose a concept of social justice and move purely to a totally free-market economy and is this in the best interests of everyone?

Sorry, playing devil's advocate.......

[Hesh]

How about Capital Gains Tax in NZ ? I know there's no CGT in NZ .. should there be ? or it shouldn't be ?

[SueDonim]

Capital Gains is the last (well maybe not the last) thing NZ needs. Savings rate is low enough already, Need more investors and CG just reduces return so discourages that investment.

No CG is a real competitive advantage and could help get more of the needed infrastructure built.

[Super_BQ]

Capital Gains is the last (well maybe not the last) thing NZ needs. Savings rate is low enough already, Need more investors and CG just reduces return so discourages that investment.

Without addressing the primary goal for CGT is to discourage 'speculation'. Notably in real estate. I stand to repeat again, why are homes more affordable overseas like in America or Canada than in NZ (dollar for dollar on earning ability)?

If there is to be any form of investment in NZ, it should NOT be in the form of exploiting homes. For such a small nation, what areas are there besides real estate that can generate sufficient capital gains? Certainly not in the NZ stock market.

No CG is a real competitive advantage and could help get more of the needed infrastructure built.

If NZ is to have any competitive advantage, it certainly does not have much against neighboring Australia (which does have CGT). I fail to see what "infrastructure" you are referring to?

Let's be frank. All the government wants to do is rake in more tax revenue and it's certainly not coming from those in the top 20% wage earners or the self employed. The low income and middle class will foot most of the tax revenue from the rise in GST.