The details that Guyon Espiner has on One News last night about the CGT were too specific for them not to have been leaked to him ahead of Goff's tax announcement in the next week or so. Labour has to raise tax revenue from somewhere; their promises released so far are of additional spending of around $7 billion per annum, and the election is still more than four months away. That money has to come from somewhere, and it's inevitable that the top tax rate will rise again. Labour has banged on time and time again that "John Key's rich mates" got huge tax cuts last year. They ignore the fact that now, after two rounds of tax cuts as promised by National, three-quarters of New Zealanders now pay a top tax rate of 17.5%.
We were listening to Newstalk ZB as we drove home last night. Larry Williams was talking with Janet Wilson and another woman whose name we didn't catch. But one of the women (we can't say which, as we didn't hear all the piece, and couldn't work out who was who) described the likely increase in PAYE as "Labour's chip-on-shoulder tax", which we reckon is a very accurate description.
Why does Labour so despise those who get ahead in life, and are able to earn good salaries? Some of these are even Labour Party supporters; public servants, school principals, even MP's themselves. Where is the carrot to get ahead if all you have to aspire to is a life of paying higher taxes?
Mike Hosking summed things up well in his editorial piece on Newstalk ZB this morning with this comment:
So at least you can argue that although any new tax is not a good tax, at the very least it levels the playing field, and will earn some coin for a party that has a major ‘where is the money coming from?’ question to answer.
The other up side is it provides contrast for the election. You have choice, you want to pay more tax, Labour is for you. You want to pay less, try National.
Quite so. We mentioned above that the faces had changed, but that the message hadn't. Here's what we were referring to:
The choice is ours, come 26 November.
8 comments:
It rather sounds like you're doing the despising here. People like me, who work hard (and pay happily a bucket of tax every year - and it really is a big bucket), want to live in a stable, caring society in which compassion is shown to those in need, in which social cohesion is preferred to vast difference in wealth and opportunity, in which infrastructure is well-maintained, in which education and health provision is not rationed on the basis of wealth, in which the rule of law is properly funded, in which avoiders and evaders of responsibility are dealt to, in which opportunity is not delimited by parental wealth etc etc, vote Labour happily, for we see in National and ACT a blueprint for society in which the affluent hide behind locked gates in their ghettoes, fearing and distrusting the common herd. I have lived in this type of society in the US, South Africa and many developing countries, and it is appalling. I have also lived in countries with very low (relatively) wealth dispersion, and they could not, on the whole be more different from that model. I know which type of society I prefer to live in.
"should Labour become the government in November".
Pfftt.
That was a hard read Robert.
The tears in my eyes (from laughing so hard after the "vote Labour" bit) made it bloody hard to see anything to be honest.
Top level tax cuts should never have happened. Borrowed for, and have generated no impetus to the economy. Shocking ideological policy that has screwed a lot of people except National's mates. Very narrow minded short term focus. The CGT and reinstating the tax cuts at a higher level are good long term vision.
RW - perhaps you may care to consider this tax regime.
`Tax Rates in 2011 - Hong Kong
Individual
The standard rate of Salaries Tax is 15%.
Corporate
The normal rate of Profits Tax is 16.5% for corporations and 15% for unincorporated businesses.
Capital gains
Hong Kong does not levy capital gains tax.
Indirect Taxes
Hong Kong does not levy value-added tax (VAT), goods and services tax (GST) or sales tax.
Other Taxes
Estate Tax was abolished in 2005.
Stamp duty on immovable property is charged at rates up to 4.25%, depending on the sale or transfer price of the property. However, to curb property speculation, the government introduced a Special Stamp Duty (SSD) on residential property in November 2010. Further measures to discourage speculation in the property market have not been ruled out by the government.
Withholding Taxes
There are no domestic withholding taxes on dividends, interest or royalties'
Boy NZ would go ahead in leaps and bounds under a tax structure like this. If I am right it was a former British Labour Politician
Murray MacLehose who initiated them when appointed Governor of Hong Kong.
@pdm: do you really think that we would want to reproduce an enclave economy on the HK model, dependent on a larger, dominant nation, based on constrained democracy at all levels, oligarchic business power and limited social services? I can see that that might be the vision of parties that you may support, and that that is the direction National wants to take us, but it's not a direction that I favour. However, you could always join those other expatriate NZers who like the model. Cathay Pacific is doing cheap one-way flights to HK at the moment.
pdm your utopia is most people's hell. You should go there and leave NZers to the version of this country that you see as hell.
A photo of Brash beside the word 'Cut' - pleeeeeeease Inv2!
Tell me you see th irony!
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