web analytics
The Standard

Stealth Taxers

Written By: - Date published: 10:09 am, April 19th, 2013 - 16 comments
Categories: gst, same old national, tax - Tags:

National, far from being their idealised “low tax party” are in fact the “stealth tax party”.

While they’ve lowered the top rate of tax and the company rate, helping out the wealthiest, there has been regressive tax after regressive tax increase on the smaller hidden things.

Well GST isn’t so hidden, but whacking that up means that our poorest 10% have effectively >17% additional income tax, due to their situation of dis-savings.

But they’ve hiked a lot more things that we all pay, like ACC levies (especially on motorcyclists), and EQC (I realise there was an earthquake, but there were options like those proposed by the Greens).

But they’re still scrimping for money, desperate for their Budget surplus in 2014-15 (usefully after the election).  Their plan isn’t going so well, which is why they’ve stopped going on about how their “re-balancing” means the tradeable sector doing so well, and the current account deficit (now ballooning out again after the Earthquake Insurance money lowered it for a while).  They’ve had to stop saying it’s great that Kiwis are taking advantage of low interest rates and admit that there’s a new housing bubble…

There’s a good analysis here, of how much difficulty they’re having creating some Budget sparkle, while scrimping for cash and (regressive) taxes:

“Since this time last year the Government has increased the excise on fuel, rejected a cut to ACC levies, imposed higher taxes on “paperboys” and tried to bring in the so-called car park and cellphone tax before it was roundly rubbished and axed. Then there is the increase to prescription charges.”

Of course the main driver of inflation at the moment (more than prescription charges rising 67%), is the cigarette price hike.  I’m not keen on smoking, but it’s yet more tax targeted at the many not the few from a stealth tax government.

What will be hit next?

Edit: Missed taxes – tax on employer’s Kiwisaver contribution, increased compulsory student loan repayments, and removal of 10% discount on early repayment…

16 comments on “Stealth Taxers”

  1. not a stealth tax as such, but they’ve changed the student loan scheme now so that you don’t get your money refunded if you overpay your annual loan repayment requirement (based on your annual income). so if, for example, you were in a reasonably high paying job, then got made redundant, you would have overpaid your annual student loan requirement by a reasonable amount, but won’t get that money back. at a time when you’re probably going to need it badly.

    that’s on top of the reversal of national’s own policy of 10% discount on early repayments.

    so yes, they are trying every method they can to raise funds.

    • Lanthanide 1.1

      Are you sure? Can you link to IRD website stating this is the new policy?

    • Chris 1.2

      Pretty sure this isn’t right – the only time they won’t refund you is when it is an insignificant amount. However, since it goes the other way as well (i..e you’ve underpaid by an insignificant amount they won’t worry about it) I would assume the amount they consider insignificant is reasonably low.

      • stargazer 1.2.1

        no, i’m sure it’s right. will have to look at IRD website this evening to confirm, but we’re getting clients in this position, having no access to their overpaid student loan moneys.

        • Chris 1.2.1.1

          To save you time tonight here is the change you are talking about:

          http://www.ird.govt.nz/technical-tax/legislation/2011/2011-62/2011-62-borrowers-repay-obligs/

          It basically changes it so that if each pay your student loan is assessed rather than annually. However, there is still provision for if you have significantly over or under paid to get a refund. At least that is my interpretation of it – if you have clients in that position it is worth writing to the Inland Revenue to request a refund – the actual obligation hasn’t changed and if you have significantly overpaid they have no authority to hold the refund.

  2. Lanthanide 2

    “What will be hit next?”

    Kiwisaver. They’ll introduce compulsory kiwisaver and use that as the excuse to get rid of the $1,000 sweetener. And/or trim back on the (poorly named) government ‘tax rebate’ portion even further than they already have.

    • Ben Clark 2.1

      Actually that’s one I missed – the tax on the employer’s contribution to KiwiSaver – that actually raises quite a bit for them. Employer’s contribution increases to 3%, but most of it goes to the Government…

  3. weka 3

    Another stealth tax: the increase in Road User Charges, based on the maximum legal gross laden weight of the truck, rather than the usual gross laden weight (the difference can be significant).

  4. another stealth tax is the whole look-through company regime, which is limiting losses that can be claimed against other income. this doesn’t just affect residential rentals, it affects all shareholders in companies that make losses & don’t have the asset base which will allow them to claim all of those losses. i can see the policy intent behind the regime, but it’s a complicated stealth tax which many people won’t understand.

  5. ghostrider888 5

    and the RWNJ like to paint the Left as tax and spend…
    NAct tax and borrow :-D

  6. feijoa 6

    Yes stargazer
    Our business is hitting this now -we run a small business, and a few years ago bought the premises with a large mortgage, and the business pays rent which pays the mortgage and rates etc. We are about to strike a very large tax bill based on the principal we are paying off. I haven’t earned a cent from the premises, as the rent all goes into the mortgage. I accept paying taxes if I am personally receiving rent as income to me personally, but this tax is a real strangler.

    • RedBaronCV 6.1

      Employee ACC levies rose – the bit they take off with your PAYE. Company’s office charges back on again. Seen the price of passports?

  7. BrucetheMoose 7

    Taxing paperboys? Next they will be taking cuts from Grannies winnings from bingo evenings.

  8. felix 8

    Vehicle licensing fees have gone through the roof under this govt.

    And the cost of a passport damn near doubled overnight. Guess they see that as a growth area.

  9. kiwicommie 9

    What about the dream tax? *remembers the Facelift episode with Don Brash*

Recent Comments

Recent Posts

1 2 3 7

  • Latest Air NZ plan carries on regional snub
    Christchurch Labour Members of Parliament have secured a meeting with Air New Zealand boss Christopher Luxon following the airline’s decision to cut its Christchurch to Tokyo summer flights.  They are also calling on the Minister of Transport Simon Bridges to… ...
    14 hours ago
  • Carmel Sepuloni back in Social Development role
    Andrew Little has reinstated Carmel Sepuloni as Labour’s Social Development spokesperson following the sentencing of her mother in the New Plymouth District Court today. “It has been a tough time for Carmel, but we both agreed it was appropriate she… ...
    15 hours ago
  • Government taking Kiwis for April Fools
    Many Kiwis will be wondering if the joke is on them when a raft of Government changes come into effect tomorrow, Labour Leader Andrew Little says. “First is ACC and National’s unwillingness to end its rort of Kiwi businesses which… ...
    17 hours ago
  • Time to show RMA housing affordability plans
    Labour is challenging the Government to reveal its plans to make housing more affordable through amending the Resource Management Act, Labour’s Housing spokesperson Phil Twyford says. “Labour remains willing to consider the proposals on housing affordability on their merits and… ...
    17 hours ago
  • John Key now admits no broad support for RMA changes
    John Key has now been forced to admit that he never had the broad political support to gut the Resource Management Act, says Labour’s Environment spokesperson Megan Woods. “Cornerstone legislation such as the RMA should never be changed without genuine… ...
    2 days ago
  • National’s changes leave student bodies in chaos
    The chaos created by National’s scrapping of compulsory student association membership may force the 86-year old Union of Students Association to fold, Labour’s Tertiary Education spokesperson David Cunliffe says. “National’s 2011 Voluntary Student Membership Act has left student associations with… ...
    2 days ago
  • Tragedy must be impetus for better training
    The Police Minister needs to explain why unsworn and inadequately trained custody officers were put in a situation of caring for a medically unwell prisoner on a busy Saturday night, Labour’s Police spokesperson Kelvin Davis says. Commenting on an IPCA… ...
    5 days ago
  • Government must be more transparent on investor state clauses
    The Government must be more transparent around the draft investor state dispute settlements in the TPPA, says David Parker, Labour’s Export Growth and Trade spokesperson. “Labour is pro trade, and is proud of the FTA we negotiated with China, which… ...
    5 days ago
  • Protect university staff and student voices
    The Green Party believes ensuring student and staff representation on university councils is important. National recently passed a law reducing the size of university governance councils while increasing the proportion of the members nominated by, guess who… Steven Joyce. The… ...
    GreensBy Gareth Hughes MP
    6 days ago
  • C’mon Nick what’s the truth on the RMA
     “Nick Smith has got to fess up and tell us what is happening to his much vaunted RMA reform, Labour’s Environment spokesperson Megan Woods says.  “With just a day and a half to go before the polls open in Northland,… ...
    6 days ago
  • SSC salaries sink National’s spending spin
    Massive pay rises at the State Services Commission prove National’s claims of clamping down on spending in the public sector are simply fantasy, Labour’s State Services spokesman Kris Faafoi says. “Salaries in this one department are almost $70,000 more than… ...
    6 days ago
  • We can fix Christchurch and keep our assets
    The Christchurch City Council is seeking public feedback on its proposed 10 year plan for Council revenue and spending. This is probably one of the most significant 10 year plans ever to be written by a local council because of… ...
    GreensBy Eugenie Sage MP
    6 days ago
  • Epidemic of serious assaults in our prisons
    Labour wants stab proof vests and pepper spray for all corrections officers to keep them safe from the epidemic of serious prison assaults that are occurring around the country’s jails, says Labour’s Corrections Spokesperson Kelvin Davis.  “There have been five… ...
    6 days ago
  • Listen to the locals Hekia!
    Minister Hekia Parata needs to understand what consultation is, Port Hills MP Ruth Dyson says. “It means you have to listen to what people say in their submissions and then be able to demonstrate you have considered their views when… ...
    7 days ago
  • Thanking our caregivers
    Let’s celebrate and thank our caregivers. This week is caregivers’ week. It’s a chance to acknowledge the thousands of women, and occasional other person, who are caring for the elderly and disabled in our country. They hold people’s lives in… ...
    GreensBy Jan Logie MP
    7 days ago
  • Mana Post shop the best outcome for community
    Labour MP for Mana Kris Faafoi has welcomed the move to place the services from the Mana Post shop to a local small business. “This is the best outcome for the community we could ask for. All the vital services… ...
    7 days ago
  • Labour looks to put the tea back into entitlements
    Labour is moving to restore the rights of Kiwis to take tea and rest breaks, Leader Andrew Little says. “Within months of the Government’s Employment Relations Amendment Bill becoming law we are already seeing some of our largest companies, including… ...
    7 days ago
  • Desperate money grab to keep Ruataniwha afloat
    The Hawke’s Bay Regional Investment Company’s decision to borrow $4 million to keep the Ruataniwha project afloat is a case of throwing ratepayer’s good money after bad, says Labour’s Water spokesperson Meka Whaitiri and Napier MP Stuart Nash.   “This bridging… ...
    1 week ago
  • Roundup: UN finds it “probably” causes cancer
    At last the UN has spoken out against the widely-used weedkiller Roundup. The UN’s International Agency for Research on Cancer has identified glyphosate, the principle ingredient in Roundup, as a probable carcinogen. They also include as probable carcinogens the insecticides… ...
    GreensBy Steffan Browning MP
    1 week ago
  • World water day: eight rivers in one day
    Our photo journey started by the Waioweka (also known as Waioeka) River which flows from Te Urewera to Opotiki, and is surrounded by beautiful forest. The water looked great! Kopeopeo Canal It contrasted greatly with the Kopeopeo Canal near Whakatane,… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • We all benefit when education meets everyone’s needs
    As Dyslexia week comes to a close,  Dyslexia NZ have reminded us that around 10% of our citizens are dyslexic and are entitled to better support. One of their strongest arguments is that failure to provide identification and support for… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • Big change starts small
    Today marks Race Relations Day in New Zealand. Race Relations Day coincides with the International Day for the Elimination of Racial Discrimination.  The United Nations General Assembly chose this day as it marks the day in 1960 when 69 peaceful… ...
    GreensBy Denise Roche MP
    2 weeks ago
  • Israel, Palestine and the question of statehood
    The knife-edge election in Israel complicates the Middle East situation, even more than usual. The Prime Minister-elect, Binyamin Netanyahu, is moving to form a government. Netanyahu has indicated that, during his term, a Palestinian state would not be established. That… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • Christchurch transport goes backwards
    The Green Party has a vision of a liveable, accessible Christchurch with a sense of identity and strong connected communities. Instead, 2013 census figures released by Statistics New Zealand reveal a fractured community, and tell a story of frustrated Christchurch commuters… ...
    GreensBy Eugenie Sage MP
    2 weeks ago
  • Super Fund should divest $140 million in high risk coal
    The Green Party is calling on the New Zealand Super Fund to divest their $140 million investment in coal companies that are vulnerable to becoming financially stranded according to a damning new report from Oxford University. The Smith School of… ...
    GreensBy Russel Norman MP
    2 weeks ago
  • Learn to count with Mark Osborne: 0 + 1 = ?
    The adage about the first casualty of war being truth is one that might often be applied to the political battle for hearts and minds, and of course votes. A rather unfortunate example of this has been arriving in the… ...
    GreensBy David Clendon MP
    2 weeks ago
  • Is it still a safety net when the holes are this big?
    Over the last few weeks I’ve been wondering how safe our income support system is for people, especially those with cognitive or learning disabilities. I’ve been trying to support a young man who was severely injured in a workplace accident… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • Pasifika – protecting the Pacific needed now more than ever.
    Over the weekend thousands of Aucklanders flocked to celebrate our city’s diverse Pacific communities and cultures at the annual Pasifika festival and the Greens were there to join them. The Pasifika festival has been held every year for 23… ...
    GreensBy Denise Roche MP
    2 weeks ago
  • Sounds Stakeholders Seek a Sustainable Future
    It was heartening to see a large number of people who care about the Marlborough Sounds come together at the Marlborough Marine Futures’ forum in Picton on March 8. Fellow Green MP Steffan Browning, who lives in Marlborough, and I… ...
    GreensBy Eugenie Sage MP
    3 weeks ago

Removed at the request of The Daily Blog.
Public service advertisements by The Standard

Current CO2 level in the atmosphere