In the beginning there was tax. Different forms of tax.
But to New Zealanders there was Income tax. Income tax is graduated, or to put it euphemistically it is progressive, the more you earn the more your proportion of income is taxed. This is the way it is now.
After that Roger Douglas had a great idea and he introduced GST. 1984, big brother. This was the tax on spending, it stated at about 7.5% and is now 15%. It was supposed to reduce income tax..
Now we had tax on everything we earned and everything we spent. Roger Douglas also proposed a flat tax, as below Gareth Morgan does.
GST and flat tax on income favour high income earners. A high earner does not spend all his money on good and services as the moderate or lower earner does, and he also has more savings if his tax is the same rate as a lower earner.
The big kahuna Gareth Morgan who is a green socialist wants everybody to pay at nearly the top rate of NZ tax, far in excess of average New Zealand or Australian tax and he proposes a flat tax of 30%, but more on this later.
Morgan also has proposes an entirely new taxation for New Zealanders.
It goes like this.
Every asset you have will be taxed.
Your house, your bank account, your capital, non current assets, your investments, your factory, your workshop, everything
So now there would be tax on income, tax on everything you spend, and tax on everything you thought you owned.
Tax on everything that moves and tax on everything that doesn't move.
He mischievously calls it a wealth tax, and this is dishonest. . It is an asset tax, it applies to everyone, except that probably the clients Morgan has, who will raise their costs, and massage their books to refuse it. It would throw the NZ economy into disarray as the biggest flight of capital, assets, resources and people packed off for overseas.
And there would be exemptions creep in as there were for the Roger Douglas GST. Exemptions could be stocks and shares, foreign exchange, farms, and likely special arrangements for exporters.
In other words a middle class yearly tax on homes would be the result as well as a windfall for Accountants and Lawyers .
Unbelievable as it may sound, Morgan has proposed a superannuation scheme which nearly halves the benefit presently available. He wants to distribute this income to young people, without obligation from them. A green soup brain redistribution tax if ever
there was one
Here is an example : A widow of seventy years of age, with small savings but only superannuation income in Auckland. This woman will have her superannuation reduced from about $350 per week to $220 per week. As well as this the social progrom dictates that she has to pay taxes on her house which she can already hardly manages to maintain. Morgan proposes that the widow's home [ value $700,00 ] in Auckland be taxed at 1.8% per year, that is $12,600 per year.
In one foul swoop the social engineer has taken $18,000 off this woman evey year, and he proposes to prop up a non taxed income at the lower end of the scale with this money. Thanks Gareth.
What I am going to do.
I am going to make sure the big kahuna lunatic taxation scheme will not decimate New Zealand. It will not send three Emirates flights out of NZ to Australia every day. It will be consigned to the dustbin where it belongs and capital flight, investments, and resources will not have to leave New Zealand.The superannuation is staying as it is with only moderate tweaking for now . We are not going to transfer the moderate assets on hard working New Zealanders where Gareth directs.
We are not going to push people into concrete jungles downtown, as the kahua proposes .
We need to find out if there is any real support for the social progrom.
We need to find out if there is any support for the big kahuna lunatic taxations in any way. Do they support socal engineering as Morgan proposes
Greypower will need to be mobilised and ready
Home owners need to be aware that social engineers are ready to tax them out of their homes, especially those without income.
There are hundreds of thousands of them, they will wipe the big social tax off the map.
The big tax is going into the trash can where it belongs.
In a funny passge in the explanation of his new tax policy, Morgan explains to a retiree that though he is slowly taking their house from under their feet they can eat it first to prevent this nonsense.
"CCT payment can be delayed (but an interest cost would be added to the amount each year).
This amounts to retirees eating their house.
For an average house, if the CCT were rolled forward as an accumulating debt (incurring a 6% real use-of-money charge each year), it would take around 25 years for the loan to equal the value of the house."
He means we take your house off you and redistribute it to not your children....
NZ tax rates
|up to $14,000||10.5 cents|
|from $14,001 to $48,000||17.5 cents|
|from $48,001 to $70,000||30 cents|
|$70,001 and over||33 cents|
across to Australia and have a look at their rates
|Taxable income||Tax on this income|
|0 - $18,200||Nil|
|$18,201 - $37,000||19c for each $1 over $18,200|
|$37,001 - $80,000||32.5c for each $1 over $37,000|
|$80,001 - $180,000||37c for each $1 over $80,000|
|$180,001 and over||45c for each $1 over $180,000|
go here to see a few matters on capital gains tax
small family and travel films
another tax example next blog down, scroll