Sorta kinda yes, sorta kinda not really. The rate banks pay on their profits is the company tax rate, so it's different to the rates paid by individual savers (which vary depending on the saver's total income).
Banks pay tax on their profits. Profit is income less costs. Since the interest from borrowers is income for the bank, some of it ends up as profit and gets taxed. Along with income from account fees, various other charges. Costs include salaries and wages, buildings and software and other stuff needed to run the bank, regulatory costs, interest on money the bank has to borrow, writing off bad loans, various schemes to shift profits to offshore owners such as licensing and branding and intellectual property fees, etc etc.
I am firmly of the belief that taxing interest payments directly is the proper response and would give govt a direct means of regulating lending. Do Not be misled, The root of the problem is usury !
People have patiently tried to explain it to me, totally legitimately, but I still can't figure out why we don't tax businesses on gross revenue just like we tax people PAYE.
To do that you would need to make the tax rate much lower, and even then it would likely sink many small to medium businesses.
In my field a good year sees the company make 5 percent net profit onces expenses wages etc are all paid.
Revenue is somewhere around 5 million so 250k profit is a good year and that 250k is what we pay company tax on.
In a bad year we might have revenue of 4million meaning a small loss or at best break even and no company tax paid. If the tax was purely on revenue the only option would be to start letting people go or sinking the company into debt.
But isn't the peril of debt/downsizing/savings/folding exactly the same as that faced by people every day? Lose your job or get your hours cut, we all have the same choice to make.
Yes it is the same peril, but it would effect everyone in the company and one bad year would sink it meaning 40 staff are out of work. In the current system profit is left in the company so it can absorb 2 or 3 bad years and retain all the staff.
Now im lucky I work for a company that puts its staff first, everyone kept their jobs over covid, we were paid 80 percent and now we are busy the company is making 'catch up' payments to bring that 80 percent up to 100.
Plenty of employers (looking at you warehouse group) are short sighted and dont realize the people are what makes the whole thing work. Mine realizes that by retaining staff you save tonnes of money in recruitment and as soon as the market improves you are well placed to take advantage.
Whether or not the profit is left in the company is up to the shareholders. It seems to me the difference is that when a company makes a loss, it gets a tax break. But the net profit has many loopholes, from CER to the old "BrandNamenz is a subsidiary of brandNameglobal that makes no profit because various fees to brandNameglobal happen to match what would otherwise be net profit".
There's no reason similar tax breaks can't be done, maybe even targeted atr NZ-owned businesses. GST already does the tax reimbursement. PAYE does rebates.
The logic of business taxation is that revenue is taxed but that expenses which contribute to that revenue may be deducted in calculating the business' tax liability. Interest however is something of an oddball cost inasmuch as it does not contribute to the earning of revenue. Businesses don't borrow – proprietors borrow and invest in their businesses, but such borrowing is a personal expense rather than a business expense. I think the Income Tax Act has it wrong and interest should not be deductible for tax purposes.
Aren't business liabilities debts? Vouchers and holiday pay and so on?
And why are people taxed on the expenses that contribute to their income? Food and lodging, for example? Can I deduct my clothing that I wear to work, as opposed to just schlepping around the house?
Businesses don't borrow – proprietors borrow and invest in their businesses, but such borrowing is a personal expense rather than a business expense.
Tell that to my bank, they may well be requiring me to offer security over my personal assets and income, but if the business didn't exist there would be no loan.
The question you need to ask is, what is the purpose of this borrowing expense?
In McF's example, food and lodging, is an expense that would be incurred regardless of whether the person paying it was in business or not. The essential and broader purpose being to stay alive rather than necessarily operate a business.
ok, so what about my work clothes. Not uniform or ppe, just clothes I wear to work? I know if I was a contractor I could mark e.g. uniforms as an expense, why can't I do that as an employee?
Again the question comes down to purpose; ordinary street clothes that could be worn anywhere don't count as deductables, but uniforms that only have a work purpose do. (Usually uniforms will be provided to employees, while contractors will purchase their own … hence that small distinction.)
Every tax administration has to draw a line somewhere on this, otherwise you'd finish up with every expense, everywhere, being deductable and no-one would have any taxable income at all. Fun far right fantasy, but not very practical.
Although more widely I do agree with you. Australia rather generously allows quite a range of work related expenses to be claimed, that NZ does not.
So every expense a business makes to merely exist is deductible (cleaners, xmas functions, rent for admin space, cars for managers who only work on one worksite), but expenses I have for merely existing aren't.
Flipping it around, if individuals only paid tax on their annual "profit" in the same way businesses do, you can bet the farm that the government would close "tax avoidance" (not "evasion") schemes like "IP fees to global parent corporation based in the Caribbean".
In fact in some ways that's the Mossack Fonseca thing that got closed at the NZ end when they beefed up identification rules.
Flipping it around, if individuals only paid tax on their annual "profit" in the same way businesses do,
By definition profit exists only in the context of a business, and most proprietors would consider it the primary purpose of owning and running a business. And that profit is ultimately distributed to it's owners as a taxable activity.
By contrast what is the purpose of your life? A person earns money in order to spend it, not to have it sit idle in a bank. The idea of profit as the primary purpose of our personal lives is a form of degeneracy.
Or as others have pointed out, taxing the gross income of all businesses would lead to huge distortions as margins across different business sectors vary enormously. Some sectors, like supermarkets would pay massive amounts of tax on their turnover, while others like professional services much lower amounts.
Consider the situation when as a software engineer I work as a contractor, not an employee. I'd have a little company that would have relatively low costs, laptops, travel, a few software licenses, while the huge majority of the revenue would be paid out to me as as drawings. If the company paid tax on it's gross revenue, it would be taxed once as company income, and then almost all of it again as personal income. Effectively double taxing me on the same income.
By contrast, if gross revenue was taxed on a business that bought and sold capital items, for example multi-million dollar industrial equipment, would see the govt would be taking a chunk of every business to business transaction, again leading to massive distortions. A typical manufacturer/wholesaler/retailer chain might see the same item taxed at least three times before it got to the end user.
The tax system we have may be arcane in parts, but it has evolved over many decades to serve us reasonably well. It could certainly stand for improvement, but first we need to understand the machine we propose tinkering with. In my experience through a long career in heavy industry, the first step to make something go better was very rarely to just take a sledge hammer to it.
And nothing above says that the lines are set in concrete. Different tax administrations interpret these matters quite differently. For example in the USA (as far as I'm aware) householders can claim mortgage interest on the family home as a deductable expense.
I quite like this idea, as it would tend to put homeowners and investors on a more even footing.
Tell that to my bank, they may well be requiring me to offer security over my personal assets and income, but if the business didn't exist there would be no loan.
If the business doesn't exist then the issue doesn't exist either. We are talking about a business that exists by dint of some investment, and suggesting that it makes no difference to that business whether the money so invested is borrowed, or whether it comes from the proprietor's own pocket.
The question you need to ask is, what is the purpose of this borrowing expense?
That is the question the Income Tax Act asks. I'm suggesting that this is the wrong question to ask. To me it seems senseless to suggest that the purpose of an expense is "the acquisition of taxable income" unless the expense contributes to that objective. Augmenting one's capital by borrowing puts one in the position of being able to invest – a personal benefit – but it is the investment itself that earns the taxable income.
The purpose of borrowing is the augmentation of capital.
All profits are taxable except on private homes owned for 5 yrs or more and Rentals of 10years ownership.The highly profitable big 4 Aussie banks pay no tax in NZ none ,under CER they can move profit to Australia which they do.So the Australian govt has been getting subsidized to the tune of $1.5 billion of tax on the $6 to$7billion profits the big 4 have been extracting out of NZ.
A reporter for the travel site, Gene Sloan, is aboard the SeaDream 1 and was meant to be documenting the new safety measures on the small vessel, which departed from Barbados on Saturday and is carrying 53 passengers and 66 crew.
The Herald specialises in reporting on the various outrages being perpetrated against the entitled Kens and Karens of our world, usually well groomed white middle class professional types with the ear of some reporter or another, who are shocked that they can't game the MIQ system or do as they please due the pandemic's suspension of the normal rules that advantage their wealth, class, privilege and connections.
That people who refuse to deal with the new reality would allow that denial to lead them to take a cruise is hardly surprising, but it is grimly funny.
Green Party co-leader James Shaw says the Government needs to use the levers it has to stop further over-heating in the housing market. He said these levers could be taxes on capital gains and wealth.
A subtle signal that he no longer believes in neoliberalism? Oft criticised here due to his corporate image, he has not advocated any economic ideology as far as I've seen.
Labour will no doubt respond with organised hand-wringing. The PM did declare herself unhappy with the market whoosh but carefully avoided any statement of intent to rectify the situation. Grant will be tempted to declare TINA as usual but then think that could be waving the red flag at the leftist bull so better to lay low say nuffin.
Shaw’s comments were very careful. They avoided direct criticism of what the Reserve Bank was doing, but said it was the Government’s job to rise to the occasion to mitigate the unwanted consequences of the central bank’s actions.
Govt actually do something? The notion is likely to ruffle complacent Labour feathers. Meanwhile the prospect of the Greens & Labour doing ritualised virtue-signalling at each other will have rightists salivating.
“We’ll be talking with Labour about what we can do to take the heat off the housing market, particularly now NZ First is not in the tent to slow or stop progressive policies that will improve the lives of New Zealanders,” he said.
Shaw’s comments join those from the National Party and ACT, which have gone further and criticised the Reserve Bank’s decisions and the rules that it uses to make them.
Puts the pressure on Labour to provide steerage to the economy, eh? To regulate or not to regulate. The threat: escalating media firestorm in direct proportion to emerging housing market stats increasing inequality.
I still believe all the focus on CGT is rather missing the mark however. Plenty of countries which have long standing CGT policies well before 2008 also had (or have) housing bubbles. A CGT policy does not therefore correct the price of housing. The LVR policy seemed to be doing something, however the recent data suggests that an increase in first home buyers was the biggest mover during the most recent period.
Overall I think that the problem is actually a low incomes issue. The policy preference of using monetary policy over fiscal policy has an effect of surpressing incomes and other goods price increases better than house price increases. What used to occur was that the house price increases vanished during 4-6% inflation years which were added to wages. These days that no longer occurs.
You're in good company with that focus on the question-mark over CGT efficacy. We need the govt to produce a well-designed solution. Sophisticated thinking, crowd-sourced, to give it a viable consensus base for leveraging. Experts who normally fly solo, get em flying in formation…
In the campaign the government did promise some measures to help people into homes: rent-to-own arrangements come to mind, as well as joint ownership arrangements, though I don't know the details of either.
These may help people into houses but won’t stop house prices rising.
Correct me if I am wrong but don’t we already have some form of Capital Gains tax? John key brought it in and labour extended it to five years.
mid so I wonder how much revenue it’s collected.
There's been one that long predated Key. For as long as I've had any interest in tax in NZ, any asset purchased with an intent to make a capital gain by selling it at some future date should be paying tax on the profit in that sale. Even if it wasn't the primary intent.
Of course, just about everybody that should have paid that tax easily evaded it by the simple expedient of saying the purchase intent was for the income stream and the thought of selling it for a gain in the future was never considered, honest. Even for negatively geared investments, which only make sense if you're expecting a huge capital gain.
Get the feeling the Greens have signed up to being part of a govt thats going to see inequality and poverty explode with no real power to do anything about it.
Urgent action is going to be needed to get a lid on house prices and leveraging and sadly I dont think Labour is interested in taking on that fight given the landord property owning class will fight tooth and nail.
Watch the waiting list for state housing continue to grow rapidly, rents to march upward leading to a big rise in accomodation suplements which in reality represent a massive wealth transfer to the landlord class from tax payers.
I guess though when you are a wealthy politician with a nice house or houses gaining in value far faster than the avg wage with no tax to pay is there really an incentive to make change….
Much easier to hand wring and say the right things…
God I can't stand the Greens sanctimony sometimes.
The Greens wouldn't shut the fuck up about taxes during the election campaign when National were strenuously trying to pin a tax scare moral panic on the government and their political idiocy on the matter of wealth/CGT taxes virtually forced Jacinda Ardern to stake her political reputation on NOT implementing any sort of tax.
Now the sanctimonious pricks are all "wah wah wah the government won't do anything about wealth taxes" – something they made impossible by shooting their mouths off about it before the election.
All they had to do was to exercise some message discipline before the election and then brought it up after the election for discussion. The Greens continually portray themselves as political ingenues, unable to see past their own self-righteousness.
edit: also, the government could simply close some loopholes (some – i feel generous today so not all) and collect a bit of revenue that way. You know all the money that the rich pricks (inclusive the critters in parliament) avoid paying in taxes with the steady aid of government created loopholes and good accountants. I wonder when James Shaw will advocate for that?
A broad-based tax system should include taxes on personal and business income, consumption and expenditure, pollution, and environmental resource use.
People with the least ability to pay tax should pay the least as a proportion of their income, while those who can pay more should do so to contribute to the welfare of society.
Taxes should discourage speculative investment in non-productive assets. A capital gains tax should be applied to property investment, excluding family homes.
Ecological tax reform should shift taxes away from income and enterprise and towards resource use, waste, and pollution.
Internationally, Aotearoa New Zealand should actively work to develop a financial transactions tax.
Also if should, would could we all be speculating and gambling.
So when Shaw advocates for 'closing current existing loopholes' that are 'currently' used to avoid paying taxes (something that will raise its head in news papers every other year – and i have linked to these articles on more then one occasion ) so that people who don’t pay taxes thanks to all the loopholes such as Gareth Morgan – who btw is also quite vocal about the fact tha the and his son don't pay taxes you can link to that. But you don’t? And that is telling, cause Shaw is not doing such a thing.
But to post this truly useless feel good statement currently is just i don't know, boring? Useless? Meaningless? Feel good for the faithful members which i am not?
And agian,
Would, could, should never paid taxes, Workers however who have their wages “docked or garnished” by the IRD DO pay taxes because its done before they ever lay hand on their money.
It was green party policy for the election…I seem to remember it was the media that focussed on that…sensing some conflict…but the greens forced ardern to do her (shooting her own foot) over-my-dead-body call..eh..?…heh..!…that's a bit of a stretch tiger…blaming the greens for arderns' totally unnecessary wrong-call…and of course a capital gains/wealth tax goes against the neoliberal polices ardern/robertson so cling to ..so tiger…what should be done..?..just more neoliberal incrementalism..?
What should be done? enforce that the current taxes that are levied are actually collected rather tehn written of thanks to generous loop holes provided by government.
How about that? or would that not sexy enough, not progressive enough, not grandstanding enough, and above all do-able. We don't need new taxes, we need the ones that we have collected from those that traditionally pay expensive accountants a huge amount to avoid paying any taxes over 70.000$ NZD per year. And that is costing us and has done so for years now.
All they had to do was to exercise some message discipline before the election and then brought it up after the election for discussion.
That's exactly what I – and many others – were thinking pre-election.
I voted for them too because they have a valuable contribution to make, but there are times when I wish they would exercise a little more political nous.
Read the quote I included! "Discussions" happen all the time among allied political parties… thrash it out behind closed doors and hopefully come to an agreed solution. And read what Sanctuary said @ 5.
Frightening the horses just before an election is downright stupid.
James Shaw is right. But you have to wait for the ignorant and gullible (half the voters at any one time) to catch up before you can progress a policy like CGT.
I would prefer an openess about policies….so does the nz electorate..you could argue the presentation/explanation should be clear as possible..so voters are not driven by uninformed ignorance..but blaming the greens for the timidity of our incrementalist-in-chief is a tad rich..
Look back three weeks and I bet no one can now remember a single policy this election was fought over (which should give us some pause for the substance of the entire process).
Even Ardern recognised that their manifesto cupboard was bare.
that is true that nothing much was fought over, considering that every one was afraid of the women and that party that would not even be elected dog catcher. Thus the Labour Party got no scrutiny from anyone, and anyone daring to against the grain was hounded of the page in one way or another.
Ardern and her crew will deliver nothing more then what they must. They did that the first round and they will do exactly the same on the second round. Willingly lame duck if you like. Kinder, gentler and lame as.
Just bring stamp duty back that Key removed. Simple to work out, collected at sale, not complicated at all. Make it 5% at least and if you really want to slow things down 10% or higher.
Maybe the Greens actually want to do something about poverty by reversing the massive redistribution of asset wealth to the top 5% that has taken place in the last 40 years.
One of the major (justified) complaints against the greens over the years has been their timidity…their trying to be all things to all people…and trying not to offend anyone…… Your claim they have a policy of polarisation is laugh-out-loud factually incorrect…
As just one example..they have policies of financial support for farmers to transition from the environment-visigoths that so many of them are ..how is that polarising..?….care to share a couple of examples of what you clearly see as polarising policies..?
Isn't there a law against with-holding mail from rightful recipients.
Kylie Atwood: New: A stack of messages from foreign leaders to President-elect Joe Biden are sitting at the State Department but the Trump admin is preventing him from accessing them, sources say. Traditionally State supports all communications for the President-elect.
I think the Greens will be taking the opportunity to show their supporters that they are not silenced by their agreement with Labour by shouting about CGT would do much at this stage.
This surely must be a bubble.
I wondered if another substantial rent freeze could help, banning ghost houses, banning investors from the market.????
Rent Freeze and a tax on any secondary house that is rentable and not rented. Yes. That would be a good start. But above all a Rent Freeze. People on no income, one income or the drags of benefits can not keep up, and feel good phrases with no support pay no bills.
I think the government need to make sure that there will be enough ministers around over the holidays and top health staff to manage whatever Covid will present. I cannot see a duty minister being adequate.
Should we have all Ministers sitting in Wellington 'just in case'?
I think Treetop’s comment was quite clear, read it again.
Since we’re still in the middle of a pandemic crisis I think that Ministers and Ministries’ top officials/managers who are involved in it need to be on deck most of the time. Leadership and crisis management cannot be done by Zoom and e-mail only, IMHO.
The Royal Family stayed on in England while the country was being bombed in WW2, actually at Buckingham Palace. In our trying times we expect the government to show an adequate interest in the country and a team should be on the job in Wellington.
The King [George VI) and Queen stayed at Buckingham Palace during World War Two, leaving the Palace during the evenings to spend them with their daughters, Princesses Elizabeth and Margaret, who had been moved to Windsor Castle for safety.
As the majority of bombing raids weren't carried out in daylight, especially after October 1940 when air superiority had been won by the RAF, spending nights in the country 'visiting the kids' isn't as laudable as you might think it was.
If I said I swam in the same pool as a great white shark, but it turns out only when the elasmobranch predator wasn't in it, it doesn't really carry nearly as much weight as a statement of courage.
One of the conditions it needed to fulfil before it was allowed to take on foreign crews, was advertising the positions here and showing that no New Zealanders were available to do these jobs.
An ad in October told prospective employees on the two Russian trawlers, they would be doing "the same repetitive task" the "entire time" they were out at sea.
They would need to be able to cope with the "continuous workload" that happened from the minute they left port to when they returned, and repeated the fact they would be at sea for six months, with no mention of any time off.
That reminds me of the sudden interest that the USA I think, took in the health and strength of its young male population when they called men up to go to war. So many were unfit, to go and fight (for freedom, and capitalism!).
If our government had any brains it would advertise for young men who would join a group which might be called Backbone of New Zealand or some other meaningful and rousing title; does BONZ mean anything rude in current slang? They would be in a state of readiness for a job, would be paid well and expected to go to gym regularly, take polytech courses in down time, and generally be ready for what came up. They wouldn't be on the streets getting into trouble otherwise they would be bounced off the BONZ team. It wouldn't be something that a determined bloke or blokess would do. They would be ensured of a good wage, free transport, etc. and have an advocate looking after them making sure that they weren't being fleeced, and also the reverse. They would form teams of choice who got on well and were on a league-table as to their reliability, standards etc. Some of the teams might be hapu based. So all the cuzzies could work together and keep an eye on each other so as to not go down in their ratings. Less fodder for the gangs and more proud young men aware of their own value and setting standards for themselves – less domestic violence.
Then Sealord or other wants good workers, the answer would be we have a team ready to go.
Why not? Has anyone up there got the gumption to set this up? Someone with some pull and vision and practicality. It could even be run by a clued-up tribe like Ngai Tahu appears to be. And it would be multi-racial, with any jibes beyond some normal jostling being firmly dealt with, probably with out. And no possibility of someone getting paid millions for voicing their own prejudices – no folly like that!
Oh what a great thing it could be. I wish. A combination of social investment from the government in paying the guys and girls when not working without the creepiness so often seen of stand-downs, claw-backs, and managed as a robust nation-wide body of skilled, intelligent, onto-it people with tech ability but specialising in the hands-on jobs that we humans need to do to keep our society going. Not giving it up to them, the tech wizards who get fat bums from sitting, or who stand up and work because their thoughts of their own health and safety rules their lives.
More physical work may save our society. Less energy poured into mountain biking and other land ruining activities, or running marathons. Why? Go and have working holidays helping in poor countries where activity has a point of real value. Or help clean up after the latest weather emergency in NZ and see goodwill and trees blossom from your effort!
Your solution, and many others, could have worked, but for two things.
The fishing companies don't want it to work.
And the government is too lazy and too spineless to require them to obey the law.
They are totally onboard with foreign slave crews and every other scam to screw NZ workers. Complain and they will turn around and cry racism. That trick has stopped working for them however, so they're back to pretending it isn't happening.
No emperor's clothes. They can't still rely on that legerdemain, now are they really that shameless? It must be time at last for honesty – to quote the bible verity –
1 Corinthians 13:12 King James Version
12 For now we see through a glass, darkly;
but then face to face:
now I know in part;
but then shall I know even as also I am known.
The study's authors, Jorgen Randers and Ulrich Goluke of the Norwegian Business School in Oslo, used a reduced complexity earth system model (ESCIMO) to study the effect of different greenhouse gas emission reductions on changes in the global climate from 1850 to 2500 and created projections of global temperature and sea level rises. "The purpose of this article is to report that we have identified a point-of-no-return in our climate model ESCIMO – and that it is already behind us," the authors said…
But prominent scientists from around the world, including Victoria University of Wellington's head of school of geography, environment and earth sciences, professor James Renwick, have already challenged the report's conclusions… Renwick said the results presented in the paper were interesting but at odds with the science community's understanding of how the climate was changing.
"The latest round of climate model simulations, run in support of the 6th Assessment Report of the Intergovernmental Panel on Climate Change, show that if greenhouse gas emissions were to stop immediately, there is likely to be very little further increase in temperatures and no sign of warming resuming in future," [Professor James] Renwick – who was a lead author for the IPCC 6th Assessment Report – said…
"If greenhouse gas emissions are reduced in line with the Paris Agreement, the climate would stabilise over the coming century. Some things, notably sea level rise and ice melt, would continue for longer, but at a reducing rate."
Although the title of the paper implied a full "earth system model" was used, the paper was actually based on a "low complexity model" that captured only the broadest features of the climate system, Renwick said.
This kind of bad science really annoys me and does a lot of harm. The fact it came from a business school should raise alarm bells anyway. This is the main takeaway from James Renwick. "In short, the results presented in this paper are very implausible and should not be seen as cause for alarm."
Yes confusing and not everyone would think about the likely mixed motives of a business school. Which in a matter as vital to us as this, shows a non existent set of values, or a keen desire to win brownie points that has cut across discretion and probity.
'A four-year-long investigation into "extremely serious" actions by Australian troops in Afghanistan is reported to recommend prosecutions or sanctions against more than 15 people.'
I'm looking forward to the Auckland Council meeting in which they discuss why their debt has been placed waaay over the current rate, sucking an estimated $1.4b of expenditure out of Council.
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The PSA are calling the Prime Minister a hypocrite for committing to increase defence spending while hundreds of more civilian New Zealand Defence Force jobs are set to be cut as part of a major restructure. The number of companies being investigated for people trafficking in New Zealand has skyrocketed ...
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The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts & talking with special guest author Michael Wolff, who has just published his fourth book about Donald Trump: ‘All or Nothing’.Here’s Peter’s writeup of the interview.The Kākā by Bernard Hickey Hoon: Trumpism ...
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Australia needs to radically reorganise its reserves system to create a latent military force that is much larger, better trained and equipped and deployable within days—not decades. Our current reserve system is not fit for ...
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I agree with Will Leben, who wrote in The Strategist about his mistakes, that an important element of being a commentator is being accountable and taking responsibility for things you got wrong. In that spirit, ...
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Two recent foreign challenges suggest that Australia needs urgently to increase its level of defence self-reliance and to ensure that the increased funding that this would require is available. First, the circumnavigation of our continent ...
Here’s my selection1 of scoops, breaking news, news, analyses, deep-dives, features, interviews, Op-Eds, editorials and cartoons from around Aotearoa’s political economy on housing, climate and poverty from RNZ, 1News, The Post-$2, The Press−$, Newsroom/$3, NZ Herald/$, Stuff, BusinessDesk/$, Politik-$, NBR-$, Reuters, FT/$, WSJ/$, Bloomberg/$, New York Times/$, The Atlantic-$, The ...
According to RNZ’s embedded reporter, the importance of Winston Peters’ talks in Washington this week “cannot be overstated.” Right. “Exceptionally important.” said the maestro himself. This epic importance doesn’t seem to have culminated in anything more than us expressing our “concern” to the Americans about a series of issues that ...
Up until a few weeks ago, I had never heard of "Climate Fresk" and at a guess, this will also be the case for many of you. I stumbled upon it in the self-service training catalog for employees at the company I work at in Germany where it was announced ...
Japan and Australia talk of ‘collective deterrence,’ but they don’t seem to have specific objectives. The relationship needs a clearer direction. The two countries should identify how they complement each other. Each country has two ...
The NZCTU strongly supports the OPC’s decision to issue a code of practice for biometric processing. Our view is that the draft code currently being consulted on is stronger and will be more effective than the exposure code released in early 2024. We are pleased that some of the revisions ...
Australia’s export-oriented industries, particularly agriculture, need to diversify their markets, with a focus on Southeast Asia. This could strengthen economic security and resilience while deepening regional relationships. The Trump administration’s decision to impose tariffs on ...
Minister Shane Jones is introducing fastrack ‘reforms’ to the our fishing industry that will ensure the big players squeeze out the small fishers and entrench an already bankrupt quota system.Our fisheries are under severe stress: the recent decision by theHigh Court ruling that the ...
In what has become regular news, the quarterly ETS auction has failed, with nobody even bothering to bid. The immediate reason is that the carbon price has fallen to around $60, below the auction minimum of $68. And the cause of that is a government which has basically given up ...
US President Donald Trump’s tariff threats have dominated headlines in India in recent weeks. Earlier this month, Trump announced that his reciprocal tariffs—matching other countries’ tariffs on American goods—will go into effect on 2 April, ...
Hi,Back in June of 2021, James Gardner-Hopkins — a former partner at law firm Russell McVeagh — was found guilty of misconduct over sexually inappropriate behaviour with interns.The events all related to law students working as summer interns at Russell McVeagh:As well as intimate touching with a student at his ...
Climate sceptic MP Mark Cameron has slammed National for being ‘out of touch’ by sticking to our climate commitments. Photo: Lynn GrievesonMōrena. Long stories shortest:ACT’s renowned climate sceptic MP Mark Cameron has accused National of being 'out of touch' with farmers by sticking with New Zealand’s Paris accord pledges ...
Now I've heard there was a secret chordThat David played, and it pleased the LordBut you don't really care for music, do you?It goes like this, the fourth, the fifthThe minor falls, the major liftsThe baffled king composing HallelujahSongwriter: Leonard CohenI always thought the lyrics of that great song by ...
People are getting carried away with the virtues of small warship crews. We need to remember the great vice of having few people to run a ship: they’ll quickly tire. Yes, the navy is struggling ...
Mōrena. Here’s my selection1 of scoops, breaking news, news, analyses, deep-dives, features, interviews, Op-Eds, editorials and cartoons from around Aotearoa’s political economy on housing, climate and poverty from RNZ, 1News, The Post-$2, The Press−$, Newsroom/$3, NZ Herald/$, Stuff, BusinessDesk/$, Politik-$, NBR-$, Reuters, FT/$, WSJ/$, Bloomberg/$, New York Times/$, The Atlantic-$, ...
US President Donald Trump’s hostile regime has finally forced Europe to wake up. With US officials calling into question the transatlantic alliance, Germany’s incoming chancellor, Friedrich Merz, recently persuaded lawmakers to revise the country’s debt ...
We need to establish clearer political boundaries around national security to avoid politicising ongoing security issues and to better manage secondary effects. The Australian Federal Police (AFP) revealed on 10 March that the Dural caravan ...
The NZCTU Te Kauae Kaimahi have reiterated their call for Government to protect workers by banning engineered stone in a submission on MBIE’s silica dust consultation. “If Brooke van Velden is genuine when she calls for an evidence-based approach to this issue, then she must support a full ban on ...
The Labour Inspectorate could soon be knocking on the door of hundreds of businesses nation-wide, as it launches a major crackdown on those not abiding by the law. NorthTec staff are on edge as Northland’s leading polytechnic proposes to stop 11 programmes across primary industries, forestry, and construction. Union coverage ...
It’s one thing for military personnel to hone skills with first-person view (FPV) drones in racing competitions. It’s quite another for them to transition to the complexities of the battlefield. Drone racing has become a ...
Seymour says there will be no other exemptions granted to schools wanting to opt out of the Compass contract. Photo: Lynn GrievesonLong stories shortest:David Seymour has denied a request from a Christchurch school and any other schools to be exempted from the Compass school lunch programme, saying the contract ...
Russian President Boris Yeltsin, U.S. President Bill Clinton, Ukrainian President Leonid Kuchma, and British Prime Minister John Major signed the Nuclear Nonproliferation Treaty in ...
Edit: The original story said “Palette Cleanser” in both the story, and the headline. I am never, ever going to live this down. Chain me up, throw me into the pit.Hi,With the world burning — literally and figuratively — I felt like Webworm needed a little palate cleanser at the ...
This is a re-post from Yale Climate Connections by Sarah Wesseler(Image credit: Antonio Huerta) Growing up in suburban Ohio, I was used to seeing farmland and woods disappear to make room for new subdivisions, strip malls, and big box stores. I didn’t usually welcome the changes, but I assumed others ...
Myanmar was a key global site for criminal activity well before the 2021 military coup. Today, illicit industry, especially heroin and methamphetamine production, still defines much of the economy. Nowhere, not even the leafiest districts ...
What've I gotta do to make you love me?What've I gotta do to make you care?What do I do when lightning strikes me?And I wake up and find that you're not thereWhat've I gotta do to make you want me?Mmm hmm, what've I gotta do to be heard?What do I ...
Here’s my selection1 of scoops, breaking news, news, analyses, deep-dives, features, interviews, Op-Eds, editorials and cartoons from around Aotearoa’s political economy on housing, climate and poverty from RNZ, 1News, The Post-$2, The Press−$, Newsroom3, NZ Herald, Stuff, BusinessDesk-$, NBR-$, Reuters, FT-$, WSJ-$, Bloomberg-$, New York Times-$, The Atlantic-$, The Economist-$ ...
Whenever Christopher Luxon drops a classically fatuous clanger or whenever the government has a bad poll – i.e. every week – the talk resumes that he is about to be rolled. This is unlikely for several reasons. For starters, there is no successor. Nicola Willis? Chris Bishop? Simeon Brown? Mark ...
Australia, Britain and European countries should loosen budget rules to allow borrowing to fund higher defence spending, a new study by the Kiel Institute suggests. Currently, budget debt rules are forcing governments to finance increases ...
The NZCTU remains strongly committed to banning engineered stone in New Zealand and implementing better occupational health protections for all workers working with silica-containing materials. In this submission to MBIE, the NZCTU outlines that we have an opportunity to learn from Australia’s experience by implementing a full ban of engineered ...
The Prime Minister has announced a big win in trade negotiations with India.It’s huge, he told reporters. We didn't get everything we came for but we were able to agree on free trade in clothing, fabrics, car components, software, IT consulting, spices, tea, rice, and leather goods.He said that for ...
I have been trying to figure out the logic of Trump’s tariff policies and apparent desire for a global trade war. Although he does not appear to comprehend that tariffs are a tax on consumers in the country doing the tariffing, I can (sort of) understand that he may think ...
As Syria and international partners negotiate the country’s future, France has sought to be a convening power. While France has a history of influence in the Middle East, it will have to balance competing Syrian ...
One of the eternal truths about Aotearoa's economy is that we are "capital poor": there's not enough money sloshing around here to fund the expansion of local businesses, or to build the things we want to. Which gets used as an excuse for all sorts of things, like setting up ...
National held its ground until late 2023 Verion, Talbot Mills & Curia Polls (Red = Labour, Blue = National)If we remove outlier results from Curia (National Party November 2023) National started trending down in October 2024.Verion Polls (Red = Labour, Blue = National)Verian alone shows a clearer deterioration in early ...
In a recent presentation, I recommended, quite unoriginally, that governments should have a greater focus on higher-impact, lower-probability climate risks. My reasoning was that current climate model projections have blind spots, meaning we are betting ...
Daddy, are you out there?Daddy, won't you come and play?Daddy, do you not care?Is there nothing that you want to say?Songwriters: Mark Batson / Beyonce Giselle Knowles.This morning, a look at the much-maligned NZ Herald. Despised by many on the left as little more than a mouthpiece for the National ...
Employers, unions and health and safety advocates are calling for engineered stone to be banned, a day before consultation on regulations closes. On Friday the PSA lodged a pay equity claim for library assistants with the Employment Relations Authority, after the stalling of a claim lodged with six councils in ...
Hundreds more Palestinians have died in recent days as Israel’s assault on Gaza continues and humanitarian aid, including food and medicine, is blocked. ...
National is looking to cut hundreds of jobs at New Zealand’s Defence Force, while at the same time it talks up plans to increase focus and spending in Defence. ...
It’s been revealed that the Government is secretly trying to bring back a ‘one-size fits all’ standardised test – a decision that has shocked school principals. ...
The Green Party is calling for the compassionate release of Dean Wickliffe, a 77-year-old kaumātua on hunger strike at the Spring Hill Corrections Facility, after visiting him at the prison. ...
The Green Party is calling on Government MPs to support Chlöe Swarbrick’s Member’s Bill to sanction Israel for its unlawful presence and illegal actions in Palestine, following another day of appalling violence against civilians in Gaza. ...
The Green Party stands in support of volunteer firefighters petitioning the Government to step up and change legislation to provide volunteers the same ACC coverage and benefits as their paid counterparts. ...
At 2.30am local time, Israel launched a treacherous attack on Gaza killing more than 300 defenceless civilians while they slept. Many of them were children. This followed a more than 2 week-long blockade by Israel on the entry of all goods and aid into Gaza. Israel deliberately targeted densely populated ...
Living Strong, Aging Well There is much discussion around the health of our older New Zealanders and how we can age well. In reality, the delivery of health services accounts for only a relatively small percentage of health outcomes as we age. Significantly, dry warm housing, nutrition, exercise, social connection, ...
Shane Jones’ display on Q&A showed how out of touch he and this Government are with our communities and how in sync they are with companies with little concern for people and planet. ...
Labour does not support the private ownership of core infrastructure like schools, hospitals and prisons, which will only see worse outcomes for Kiwis. ...
The Green Party is disappointed the Government voted down Hūhana Lyndon’s member’s Bill, which would have prevented further alienation of Māori land through the Public Works Act. ...
The Labour Party will support Chloe Swarbrick’s member’s bill which would allow sanctions against Israel for its illegal occupation of the Palestinian Territories. ...
The Government’s new procurement rules are a blatant attack on workers and the environment, showing once again that National’s priorities are completely out of touch with everyday Kiwis. ...
With Labour and Te Pāti Māori’s official support, Opposition parties are officially aligned to progress Green Party co-leader Chlöe Swarbrick’s Member’s Bill to sanction Israel for its unlawful presence in Palestine. ...
Te Pāti Māori extends our deepest aroha to the 500 plus Whānau Ora workers who have been advised today that the govt will be dismantling their contracts. For twenty years , Whānau Ora has been helping families, delivering life-changing support through a kaupapa Māori approach. It has built trust where ...
Labour welcomes Simeon Brown’s move to reinstate a board at Health New Zealand, bringing the destructive and secretive tenure of commissioner Lester Levy to an end. ...
This morning’s announcement by the Health Minister regarding a major overhaul of the public health sector levels yet another blow to the country’s essential services. ...
New Zealand First has introduced a Member’s Bill that will ensure employment decisions in the public service are based on merit and not on forced woke ‘Diversity, Equity, and Inclusion’ targets. “This Bill would put an end to the woke left-wing social engineering and diversity targets in the public sector. ...
Police have referred 20 offenders to Destiny Church-affiliated programmes Man Up and Legacy as ‘wellness providers’ in the last year, raising concerns that those seeking help are being recruited into a harmful organisation. ...
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Police Minister Mark Mitchell is avoiding accountability by refusing to answer key questions in the House as his Government faces criticism over their dangerous citizen’s arrest policy, firearm reform, and broken promises to recruit more police. ...
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Loading…(function(i,s,o,g,r,a,m){var ql=document.querySelectorAll('A[data-quiz],DIV[data-quiz]'); if(ql){if(ql.length){for(var k=0;k<ql.length;k++){ql[k].id='quiz-embed-'+k;ql[k].href="javascript:var i=document.getElementById('quiz-embed-"+k+"');try{qz.startQuiz(i)}catch(e){i.start=1;i.style.cursor='wait';i.style.opacity='0.5'};void(0);"}}};i['QP']=r;i[r]=i[r]||function(){(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)})(window,document,'script','https://take.quiz-maker.com/3012/CDN/quiz-embed-v1.js','qp');Got a good quiz question?Send Newsroom your questions.The post Newsroom daily quiz, Monday 24 March appeared first on Newsroom. ...
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Dumb question of the day.
Do banks pay tax on the interest they earn from borrowers. And is it the same rate savers pay . ?
Sorta kinda yes, sorta kinda not really. The rate banks pay on their profits is the company tax rate, so it's different to the rates paid by individual savers (which vary depending on the saver's total income).
Banks pay tax on their profits. Profit is income less costs. Since the interest from borrowers is income for the bank, some of it ends up as profit and gets taxed. Along with income from account fees, various other charges. Costs include salaries and wages, buildings and software and other stuff needed to run the bank, regulatory costs, interest on money the bank has to borrow, writing off bad loans, various schemes to shift profits to offshore owners such as licensing and branding and intellectual property fees, etc etc.
Thats a no i think Andre
I am firmly of the belief that taxing interest payments directly is the proper response and would give govt a direct means of regulating lending. Do Not be misled, The root of the problem is usury !
People have patiently tried to explain it to me, totally legitimately, but I still can't figure out why we don't tax businesses on gross revenue just like we tax people PAYE.
To do that you would need to make the tax rate much lower, and even then it would likely sink many small to medium businesses.
In my field a good year sees the company make 5 percent net profit onces expenses wages etc are all paid.
Revenue is somewhere around 5 million so 250k profit is a good year and that 250k is what we pay company tax on.
In a bad year we might have revenue of 4million meaning a small loss or at best break even and no company tax paid. If the tax was purely on revenue the only option would be to start letting people go or sinking the company into debt.
Yeah, the rate could well be much lower.
But isn't the peril of debt/downsizing/savings/folding exactly the same as that faced by people every day? Lose your job or get your hours cut, we all have the same choice to make.
Yes it is the same peril, but it would effect everyone in the company and one bad year would sink it meaning 40 staff are out of work. In the current system profit is left in the company so it can absorb 2 or 3 bad years and retain all the staff.
Now im lucky I work for a company that puts its staff first, everyone kept their jobs over covid, we were paid 80 percent and now we are busy the company is making 'catch up' payments to bring that 80 percent up to 100.
Plenty of employers (looking at you warehouse group) are short sighted and dont realize the people are what makes the whole thing work. Mine realizes that by retaining staff you save tonnes of money in recruitment and as soon as the market improves you are well placed to take advantage.
Whether or not the profit is left in the company is up to the shareholders. It seems to me the difference is that when a company makes a loss, it gets a tax break. But the net profit has many loopholes, from CER to the old "BrandNamenz is a subsidiary of brandNameglobal that makes no profit because various fees to brandNameglobal happen to match what would otherwise be net profit".
There's no reason similar tax breaks can't be done, maybe even targeted atr NZ-owned businesses. GST already does the tax reimbursement. PAYE does rebates.
The logic of business taxation is that revenue is taxed but that expenses which contribute to that revenue may be deducted in calculating the business' tax liability. Interest however is something of an oddball cost inasmuch as it does not contribute to the earning of revenue. Businesses don't borrow – proprietors borrow and invest in their businesses, but such borrowing is a personal expense rather than a business expense. I think the Income Tax Act has it wrong and interest should not be deductible for tax purposes.
Aren't business liabilities debts? Vouchers and holiday pay and so on?
And why are people taxed on the expenses that contribute to their income? Food and lodging, for example? Can I deduct my clothing that I wear to work, as opposed to just schlepping around the house?
Businesses don't borrow – proprietors borrow and invest in their businesses, but such borrowing is a personal expense rather than a business expense.
Tell that to my bank, they may well be requiring me to offer security over my personal assets and income, but if the business didn't exist there would be no loan.
The question you need to ask is, what is the purpose of this borrowing expense?
In McF's example, food and lodging, is an expense that would be incurred regardless of whether the person paying it was in business or not. The essential and broader purpose being to stay alive rather than necessarily operate a business.
ok, so what about my work clothes. Not uniform or ppe, just clothes I wear to work? I know if I was a contractor I could mark e.g. uniforms as an expense, why can't I do that as an employee?
Again the question comes down to purpose; ordinary street clothes that could be worn anywhere don't count as deductables, but uniforms that only have a work purpose do. (Usually uniforms will be provided to employees, while contractors will purchase their own … hence that small distinction.)
Every tax administration has to draw a line somewhere on this, otherwise you'd finish up with every expense, everywhere, being deductable and no-one would have any taxable income at all. Fun far right fantasy, but not very practical.
Although more widely I do agree with you. Australia rather generously allows quite a range of work related expenses to be claimed, that NZ does not.
So every expense a business makes to merely exist is deductible (cleaners, xmas functions, rent for admin space, cars for managers who only work on one worksite), but expenses I have for merely existing aren't.
Flipping it around, if individuals only paid tax on their annual "profit" in the same way businesses do, you can bet the farm that the government would close "tax avoidance" (not "evasion") schemes like "IP fees to global parent corporation based in the Caribbean".
In fact in some ways that's the Mossack Fonseca thing that got closed at the NZ end when they beefed up identification rules.
Flipping it around, if individuals only paid tax on their annual "profit" in the same way businesses do,
By definition profit exists only in the context of a business, and most proprietors would consider it the primary purpose of owning and running a business. And that profit is ultimately distributed to it's owners as a taxable activity.
By contrast what is the purpose of your life? A person earns money in order to spend it, not to have it sit idle in a bank. The idea of profit as the primary purpose of our personal lives is a form of degeneracy.
Or as others have pointed out, taxing the gross income of all businesses would lead to huge distortions as margins across different business sectors vary enormously. Some sectors, like supermarkets would pay massive amounts of tax on their turnover, while others like professional services much lower amounts.
Consider the situation when as a software engineer I work as a contractor, not an employee. I'd have a little company that would have relatively low costs, laptops, travel, a few software licenses, while the huge majority of the revenue would be paid out to me as as drawings. If the company paid tax on it's gross revenue, it would be taxed once as company income, and then almost all of it again as personal income. Effectively double taxing me on the same income.
By contrast, if gross revenue was taxed on a business that bought and sold capital items, for example multi-million dollar industrial equipment, would see the govt would be taking a chunk of every business to business transaction, again leading to massive distortions. A typical manufacturer/wholesaler/retailer chain might see the same item taxed at least three times before it got to the end user.
The tax system we have may be arcane in parts, but it has evolved over many decades to serve us reasonably well. It could certainly stand for improvement, but first we need to understand the machine we propose tinkering with. In my experience through a long career in heavy industry, the first step to make something go better was very rarely to just take a sledge hammer to it.
And nothing above says that the lines are set in concrete. Different tax administrations interpret these matters quite differently. For example in the USA (as far as I'm aware) householders can claim mortgage interest on the family home as a deductable expense.
I quite like this idea, as it would tend to put homeowners and investors on a more even footing.
Tell that to my bank, they may well be requiring me to offer security over my personal assets and income, but if the business didn't exist there would be no loan.
If the business doesn't exist then the issue doesn't exist either. We are talking about a business that exists by dint of some investment, and suggesting that it makes no difference to that business whether the money so invested is borrowed, or whether it comes from the proprietor's own pocket.
The question you need to ask is, what is the purpose of this borrowing expense?
That is the question the Income Tax Act asks. I'm suggesting that this is the wrong question to ask. To me it seems senseless to suggest that the purpose of an expense is "the acquisition of taxable income" unless the expense contributes to that objective. Augmenting one's capital by borrowing puts one in the position of being able to invest – a personal benefit – but it is the investment itself that earns the taxable income.
The purpose of borrowing is the augmentation of capital.
Ta kinda obvious now I see it explained
All profits are taxable except on private homes owned for 5 yrs or more and Rentals of 10years ownership.The highly profitable big 4 Aussie banks pay no tax in NZ none ,under CER they can move profit to Australia which they do.So the Australian govt has been getting subsidized to the tune of $1.5 billion of tax on the $6 to$7billion profits the big 4 have been extracting out of NZ.
That's quite depressing,
Not so fast sunshine…….
https://nzbanks.com/tax-paid
All profits are taxable except on private homes owned for 5 yrs or more and Rentals of 10years ownership.
errm … either that's not quite right or I need a chat with my ex-IRD accountant.
undiluted idiocy
https://twitter.com/markhumphries/status/1325916262673731584
..couldn’t see that coming..
A reporter for the travel site, Gene Sloan, is aboard the SeaDream 1 and was meant to be documenting the new safety measures on the small vessel, which departed from Barbados on Saturday and is carrying 53 passengers and 66 crew.
https://people.com/travel/passenger-aboard-first-cruise-ship-to-return-to-sailing-in-caribbean-tests-positive-for-covid-19/
The Herald specialises in reporting on the various outrages being perpetrated against the entitled Kens and Karens of our world, usually well groomed white middle class professional types with the ear of some reporter or another, who are shocked that they can't game the MIQ system or do as they please due the pandemic's suspension of the normal rules that advantage their wealth, class, privilege and connections.
That people who refuse to deal with the new reality would allow that denial to lead them to take a cruise is hardly surprising, but it is grimly funny.
Lotsa grimly funny going on.
https://twitter.com/TinaSfon/status/1326886611364306945
A subtle signal that he no longer believes in neoliberalism? Oft criticised here due to his corporate image, he has not advocated any economic ideology as far as I've seen.
Labour will no doubt respond with organised hand-wringing. The PM did declare herself unhappy with the market whoosh but carefully avoided any statement of intent to rectify the situation. Grant will be tempted to declare TINA as usual but then think that could be waving the red flag at the leftist bull so better to lay low say nuffin.
Govt actually do something? The notion is likely to ruffle complacent Labour feathers. Meanwhile the prospect of the Greens & Labour doing ritualised virtue-signalling at each other will have rightists salivating.
Puts the pressure on Labour to provide steerage to the economy, eh? To regulate or not to regulate. The threat: escalating media firestorm in direct proportion to emerging housing market stats increasing inequality.
I still believe all the focus on CGT is rather missing the mark however. Plenty of countries which have long standing CGT policies well before 2008 also had (or have) housing bubbles. A CGT policy does not therefore correct the price of housing. The LVR policy seemed to be doing something, however the recent data suggests that an increase in first home buyers was the biggest mover during the most recent period.
Overall I think that the problem is actually a low incomes issue. The policy preference of using monetary policy over fiscal policy has an effect of surpressing incomes and other goods price increases better than house price increases. What used to occur was that the house price increases vanished during 4-6% inflation years which were added to wages. These days that no longer occurs.
agree sanctuary. Sick of 99% of these complaints. The Karen’s and Kens expecting bau.
and blah blah there was a fire alarm and people were mixing with people from managed isolation……
move yourself out of the way then.
[Fixed error in e-mail address]
Sorry mod.
You're in good company with that focus on the question-mark over CGT efficacy. We need the govt to produce a well-designed solution. Sophisticated thinking, crowd-sourced, to give it a viable consensus base for leveraging. Experts who normally fly solo, get em flying in formation…
In the campaign the government did promise some measures to help people into homes: rent-to-own arrangements come to mind, as well as joint ownership arrangements, though I don't know the details of either.
These may help people into houses but won’t stop house prices rising.
Correct me if I am wrong but don’t we already have some form of Capital Gains tax? John key brought it in and labour extended it to five years.
mid so I wonder how much revenue it’s collected.
We do, yes, and it was around before John Key. The problem is that it is, and always has been, nearly impossible to enforce.
There's been one that long predated Key. For as long as I've had any interest in tax in NZ, any asset purchased with an intent to make a capital gain by selling it at some future date should be paying tax on the profit in that sale. Even if it wasn't the primary intent.
Of course, just about everybody that should have paid that tax easily evaded it by the simple expedient of saying the purchase intent was for the income stream and the thought of selling it for a gain in the future was never considered, honest. Even for negatively geared investments, which only make sense if you're expecting a huge capital gain.
FWIW the ASB has slapped a 30% LVR on investment borrowers while the RB drags its feet.
Get the feeling the Greens have signed up to being part of a govt thats going to see inequality and poverty explode with no real power to do anything about it.
Urgent action is going to be needed to get a lid on house prices and leveraging and sadly I dont think Labour is interested in taking on that fight given the landord property owning class will fight tooth and nail.
Watch the waiting list for state housing continue to grow rapidly, rents to march upward leading to a big rise in accomodation suplements which in reality represent a massive wealth transfer to the landlord class from tax payers.
I guess though when you are a wealthy politician with a nice house or houses gaining in value far faster than the avg wage with no tax to pay is there really an incentive to make change….
Much easier to hand wring and say the right things…
God I can't stand the Greens sanctimony sometimes.
The Greens wouldn't shut the fuck up about taxes during the election campaign when National were strenuously trying to pin a tax scare moral panic on the government and their political idiocy on the matter of wealth/CGT taxes virtually forced Jacinda Ardern to stake her political reputation on NOT implementing any sort of tax.
Now the sanctimonious pricks are all "wah wah wah the government won't do anything about wealth taxes" – something they made impossible by shooting their mouths off about it before the election.
All they had to do was to exercise some message discipline before the election and then brought it up after the election for discussion. The Greens continually portray themselves as political ingenues, unable to see past their own self-righteousness.
+1
edit: also, the government could simply close some loopholes (some – i feel generous today so not all) and collect a bit of revenue that way. You know all the money that the rich pricks (inclusive the critters in parliament) avoid paying in taxes with the steady aid of government created loopholes and good accountants. I wonder when James Shaw will advocate for that?
https://www.greens.org.nz/economic_policy
i asked about 'closing loopholres'.
Not a statement on taxes.
Also if should, would could we all be speculating and gambling.
So when Shaw advocates for 'closing current existing loopholes' that are 'currently' used to avoid paying taxes (something that will raise its head in news papers every other year – and i have linked to these articles on more then one occasion ) so that people who don’t pay taxes thanks to all the loopholes such as Gareth Morgan – who btw is also quite vocal about the fact tha the and his son don't pay taxes you can link to that. But you don’t? And that is telling, cause Shaw is not doing such a thing.
But to post this truly useless feel good statement currently is just i don't know, boring? Useless? Meaningless? Feel good for the faithful members which i am not?
And agian,
Would, could, should never paid taxes, Workers however who have their wages “docked or garnished” by the IRD DO pay taxes because its done before they ever lay hand on their money.
It was green party policy for the election…I seem to remember it was the media that focussed on that…sensing some conflict…but the greens forced ardern to do her (shooting her own foot) over-my-dead-body call..eh..?…heh..!…that's a bit of a stretch tiger…blaming the greens for arderns' totally unnecessary wrong-call…and of course a capital gains/wealth tax goes against the neoliberal polices ardern/robertson so cling to ..so tiger…what should be done..?..just more neoliberal incrementalism..?
What should be done? enforce that the current taxes that are levied are actually collected rather tehn written of thanks to generous loop holes provided by government.
How about that? or would that not sexy enough, not progressive enough, not grandstanding enough, and above all do-able. We don't need new taxes, we need the ones that we have collected from those that traditionally pay expensive accountants a huge amount to avoid paying any taxes over 70.000$ NZD per year. And that is costing us and has done so for years now.
So yeah, what ever.
Don’t let facts get in the way of you scapegoating the Greens for Labour’s actions.
https://www.stuff.co.nz/business/112099876/live-capital-gains-tax-ruled-out-by-government-prime-minister-jacinda-ardern-tax-working-group
That's exactly what I – and many others – were thinking pre-election.
I voted for them too because they have a valuable contribution to make, but there are times when I wish they would exercise a little more political nous.
So they should have kept the policy secret…and then sprung it after the election..?..yeah..that would have gone down well..eh..?
Read the quote I included! "Discussions" happen all the time among allied political parties… thrash it out behind closed doors and hopefully come to an agreed solution. And read what Sanctuary said @ 5.
Frightening the horses just before an election is downright stupid.
James Shaw is right. But you have to wait for the ignorant and gullible (half the voters at any one time) to catch up before you can progress a policy like CGT.
I would prefer an openess about policies….so does the nz electorate..you could argue the presentation/explanation should be clear as possible..so voters are not driven by uninformed ignorance..but blaming the greens for the timidity of our incrementalist-in-chief is a tad rich..
Look back three weeks and I bet no one can now remember a single policy this election was fought over (which should give us some pause for the substance of the entire process).
Even Ardern recognised that their manifesto cupboard was bare.
So that's what they're delivering.
that is true that nothing much was fought over, considering that every one was afraid of the women and that party that would not even be elected dog catcher. Thus the Labour Party got no scrutiny from anyone, and anyone daring to against the grain was hounded of the page in one way or another.
Ardern and her crew will deliver nothing more then what they must. They did that the first round and they will do exactly the same on the second round. Willingly lame duck if you like. Kinder, gentler and lame as.
Just bring stamp duty back that Key removed. Simple to work out, collected at sale, not complicated at all. Make it 5% at least and if you really want to slow things down 10% or higher.
Its called polarisation , its how the greens campaign, its destructive, sad, and stops good stuff from happening.
Edit… response to #5 this tablet wont “reply” for some reason
Polarisation or principles xanthe?
Maybe the Greens actually want to do something about poverty by reversing the massive redistribution of asset wealth to the top 5% that has taken place in the last 40 years.
polarization! Its a campaign strategy, nothing to do with principles.
It is also unethical and destructive.
One of the major (justified) complaints against the greens over the years has been their timidity…their trying to be all things to all people…and trying not to offend anyone…… Your claim they have a policy of polarisation is laugh-out-loud factually incorrect…
LOL
As just one example..they have policies of financial support for farmers to transition from the environment-visigoths that so many of them are ..how is that polarising..?….care to share a couple of examples of what you clearly see as polarising policies..?
Ahh the old switcheroo tactic. I believe I was discussing the manner of the Greens campaigning
Examples..?
Orchardists/Vineyards still dont get it…(well, its in their DNA, so never)
'Mr Tibble said the industry was the primary leader in finding workers and developing a future sustainable workforce'
https://www.odt.co.nz/rural-life/horticulture/ministry-responds-labour-shortages
$3.8 Billion Exports…and $18.90 pay offered
https://www.tvnz.co.nz/one-news/new-zealand/kiwi-fruit-pickers-have-simple-message-growers-cry-labour-pay-us-more
Isn't there a law against with-holding mail from rightful recipients.
Would it help the housing market if a person could only borrow again once the loan for a home had been paid in full?
I think the Greens will be taking the opportunity to show their supporters that they are not silenced by their agreement with Labour by shouting about CGT would do much at this stage.
This surely must be a bubble.
I wondered if another substantial rent freeze could help, banning ghost houses, banning investors from the market.????
I am no expert, but surely more can be done?
Rent Freeze and a tax on any secondary house that is rentable and not rented. Yes. That would be a good start. But above all a Rent Freeze. People on no income, one income or the drags of benefits can not keep up, and feel good phrases with no support pay no bills.
I think the government need to make sure that there will be enough ministers around over the holidays and top health staff to manage whatever Covid will present. I cannot see a duty minister being adequate.
2pm on TV 1 today the latest on Covid.
There are things called video conferences and phones and all sorts. Should we have all Ministers sitting in Wellington 'just in case'?
I think Treetop’s comment was quite clear, read it again.
Since we’re still in the middle of a pandemic crisis I think that Ministers and Ministries’ top officials/managers who are involved in it need to be on deck most of the time. Leadership and crisis management cannot be done by Zoom and e-mail only, IMHO.
They got a mandate to lead.
The Royal Family stayed on in England while the country was being bombed in WW2, actually at Buckingham Palace. In our trying times we expect the government to show an adequate interest in the country and a team should be on the job in Wellington.
As the majority of bombing raids weren't carried out in daylight, especially after October 1940 when air superiority had been won by the RAF, spending nights in the country 'visiting the kids' isn't as laudable as you might think it was.
Nitpicky comment the alien
If I said I swam in the same pool as a great white shark, but it turns out only when the elasmobranch predator wasn't in it, it doesn't really carry nearly as much weight as a statement of courage.
Nothing nitpicky about debunking alleged bravery.
Heh..!..debunking vintage monarchist-spin..(it's a thing..)
Britches up, dude, your little revenge bitterness is showing 😆
I emphasize the word enough as there is usually only a duty minister.
And
When a minister is on leave and they are required can they decline a video conference or a phone call?
I doubt that ministers will be holidaying overseas, however they may be required if Covid gets out of control.
https://www.rnz.co.nz/news/national/430515/sealord-faces-criticism-over-hiring-process-for-staff-on-trawlers
One of the conditions it needed to fulfil before it was allowed to take on foreign crews, was advertising the positions here and showing that no New Zealanders were available to do these jobs.
An ad in October told prospective employees on the two Russian trawlers, they would be doing "the same repetitive task" the "entire time" they were out at sea.
They would need to be able to cope with the "continuous workload" that happened from the minute they left port to when they returned, and repeated the fact they would be at sea for six months, with no mention of any time off.
That reminds me of the sudden interest that the USA I think, took in the health and strength of its young male population when they called men up to go to war. So many were unfit, to go and fight (for freedom, and capitalism!).
If our government had any brains it would advertise for young men who would join a group which might be called Backbone of New Zealand or some other meaningful and rousing title; does BONZ mean anything rude in current slang? They would be in a state of readiness for a job, would be paid well and expected to go to gym regularly, take polytech courses in down time, and generally be ready for what came up. They wouldn't be on the streets getting into trouble otherwise they would be bounced off the BONZ team. It wouldn't be something that a determined bloke or blokess would do. They would be ensured of a good wage, free transport, etc. and have an advocate looking after them making sure that they weren't being fleeced, and also the reverse. They would form teams of choice who got on well and were on a league-table as to their reliability, standards etc. Some of the teams might be hapu based. So all the cuzzies could work together and keep an eye on each other so as to not go down in their ratings. Less fodder for the gangs and more proud young men aware of their own value and setting standards for themselves – less domestic violence.
Then Sealord or other wants good workers, the answer would be we have a team ready to go.
Why not? Has anyone up there got the gumption to set this up? Someone with some pull and vision and practicality. It could even be run by a clued-up tribe like Ngai Tahu appears to be. And it would be multi-racial, with any jibes beyond some normal jostling being firmly dealt with, probably with out. And no possibility of someone getting paid millions for voicing their own prejudices – no folly like that!
Oh what a great thing it could be. I wish. A combination of social investment from the government in paying the guys and girls when not working without the creepiness so often seen of stand-downs, claw-backs, and managed as a robust nation-wide body of skilled, intelligent, onto-it people with tech ability but specialising in the hands-on jobs that we humans need to do to keep our society going. Not giving it up to them, the tech wizards who get fat bums from sitting, or who stand up and work because their thoughts of their own health and safety rules their lives.
More physical work may save our society. Less energy poured into mountain biking and other land ruining activities, or running marathons. Why? Go and have working holidays helping in poor countries where activity has a point of real value. Or help clean up after the latest weather emergency in NZ and see goodwill and trees blossom from your effort!
Your solution, and many others, could have worked, but for two things.
The fishing companies don't want it to work.
And the government is too lazy and too spineless to require them to obey the law.
They are totally onboard with foreign slave crews and every other scam to screw NZ workers. Complain and they will turn around and cry racism. That trick has stopped working for them however, so they're back to pretending it isn't happening.
No emperor's clothes. They can't still rely on that legerdemain, now are they really that shameless? It must be time at last for honesty – to quote the bible verity –
What a great 'development' for Fiji.
A proposed development project featuring what could be the country's first casino, has been launched in Fiji.
https://www.rnz.co.nz/international/pacific-news/430527/multi-million-dollar-development-including-casino-set-for-fiji
https://www.rnz.co.nz/news/national/430499/new-climate-report-with-concerning-findings-already-being-challenged-by-scientists
The study's authors, Jorgen Randers and Ulrich Goluke of the Norwegian Business School in Oslo, used a reduced complexity earth system model (ESCIMO) to study the effect of different greenhouse gas emission reductions on changes in the global climate from 1850 to 2500 and created projections of global temperature and sea level rises.
"The purpose of this article is to report that we have identified a point-of-no-return in our climate model ESCIMO – and that it is already behind us," the authors said…
But prominent scientists from around the world, including Victoria University of Wellington's head of school of geography, environment and earth sciences, professor James Renwick, have already challenged the report's conclusions…
Renwick said the results presented in the paper were interesting but at odds with the science community's understanding of how the climate was changing.
"The latest round of climate model simulations, run in support of the 6th Assessment Report of the Intergovernmental Panel on Climate Change, show that if greenhouse gas emissions were to stop immediately, there is likely to be very little further increase in temperatures and no sign of warming resuming in future," [Professor James] Renwick – who was a lead author for the IPCC 6th Assessment Report – said…
"If greenhouse gas emissions are reduced in line with the Paris Agreement, the climate would stabilise over the coming century. Some things, notably sea level rise and ice melt, would continue for longer, but at a reducing rate."
Although the title of the paper implied a full "earth system model" was used, the paper was actually based on a "low complexity model" that captured only the broadest features of the climate system, Renwick said.
This kind of bad science really annoys me and does a lot of harm. The fact it came from a business school should raise alarm bells anyway. This is the main takeaway from James Renwick. "In short, the results presented in this paper are very implausible and should not be seen as cause for alarm."
Yes confusing and not everyone would think about the likely mixed motives of a business school. Which in a matter as vital to us as this, shows a non existent set of values, or a keen desire to win brownie points that has cut across discretion and probity.
Australian SaS….atrocities in Afghanistan.
'A four-year-long investigation into "extremely serious" actions by Australian troops in Afghanistan is reported to recommend prosecutions or sanctions against more than 15 people.'
https://www.rnz.co.nz/news/world/430073/deeply-troubling-afghanistan-war-crimes-report-given-to-australia-s-defence-chief
Wonder if it was some of the fuckers here?. Flyin' the swastika
https://www.abc.net.au/news/2018-06-14/photo-shows-nazi-flag-flown-over-australian-army-vehicle/9859618
Shits……….
I'm looking forward to the Auckland Council meeting in which they discuss why their debt has been placed waaay over the current rate, sucking an estimated $1.4b of expenditure out of Council.
https://www.nzherald.co.nz/business/auckland-council-loses-14-billion-in-interest-rate-bet/EJ4XGSXMJDVUYLGMRPIYBTINKE/
I suspect the government is simply going to have to bail them out.