””It is absolutely extraordinary that they are able to get away with paying zero tax in this country. I really like Apple products – they’re incredibly innovative – but it looks like their tax department is even more innovative than their product designers,” Shaw said.”
apple ripping nz of
Why don’t we just have a 10% tax on all money as it leaves the country ,?
Very good work by Mr Nippert again. John Campbell has also been on the Apple case for more than a year – trying to get some explanation from Apple about their activities in NZ.
According to Nippert, Apple has at least several dozen employees in NZ. It’s NZ sales are handled by its Aussie office – so can claim not to have a business here, I think. Legal but morally dodgy.
“Apple aims to be a force for good and we’re proud of the contributions we’ve made in New Zealand over the past decade. Because our products and services are created, designed and engineered in the US, that’s where the vast majority of our tax is paid,” the spokesperson said.
But aren’t most of the products made by cheap labour in Asian countries?
Spark chief executive Simon Moutter said Apple’s zero tax bill reinforced his concerns that New Zealand’s tax base was threatened by the burgeoning wave of technology companies.
“Some of these companies are willing to use every trick in the book to minimise the tax they pay towards the cost of running our schools, hospitals and social infrastructure,” Moutter said.
…
“Whether something can be done about it is another question. The United Kingdom and Australia are taking a lead on this and it will be interesting to see how it works out for them.”
Both Australia and Britain have gone further than the New Zealand Government and impose a diverted profits tax on companies trying to unfairly skirt national tax obligations.
John Payne, spokesman for the big business umbrella outfit the Corporate Taxpayers Group, cautioned against radical changes to the tax regime and warned the mechanism used by Apple was also used by local exporters.
“It’s Tax 101 in terms of activity … and it’s quid pro quo for us when we’re operating similarly in another country,” Payne said.
But NZ companies tend not to be on the same scale as the likes of Apple. So NZ ultimately is the loser. We’d be better off if all companies, NZ and others, paid a fair share of the tax in countries where they sell products and get some income.
Although I suspect there is some self / corporate interest there – good on Simon Moutter for sounding more engaged in the country’s welfare than our RW Nact Politicians.
Don’t forget any local competitor is stuck with uncompetative outcomes as they pay onshore tax.
Is the TOP tax policy actually a good idea? Or is it just a brainfart from a mouthy millionaire out-of-touch economist that can only see things in terms of dollars?
Most of the argument will no doubt focus on the harmful effects on the asset-rich income-poor, such as the elderly who live in areas where property values have skyrocketed. This policy suggests they build up debt to pay their imputed tax, which destroys their security and peace of mind. Or they sell up and move out, which trashes the idea of community. Basically these problems come about from viewing a home as just another capital asset, which economists only value for producing income. The alternative is a capital gains tax, as used in most of the rest of the world. This gets levied at the time of sale, at the time the property has changed from being a home to just another financial instrument.
But this policy also favours businesses with low capital requirements such as Trademe, Infometrics etc over businesses that require substantial capital investment to produce tangible goods. For instance, this 3D printing firm http://www.rapidman.co.nz/ would have needed to invest a huge chunk up-front to start up their 3D printing business. Slamming them with a tax liability on that investment right from the beginning would be a big disincentive to starting up. But long term, it’s the actually tangible goods businesses that are better for the economy.
Hitting farmers with a capital tax strikes me as a particularly crap idea. It gives them yet more incentive to try to wring yet more income from their very expensive investment. Do we really want to drive more intensification by changing the tax system to favour it?
The TOP proposal also puts a continuous burden on cashflow. This adds another difficulty to companies going though a rough patch, and may put some under that would otherwise survive.
Seems to me a capital gains tax, as used in most of the rest of the world, is a much fairer, less distortionary way of taxing capital. I favour including everything, even family homes (with rollover provisions for family homes). It more fairly captures the income enjoyed by the founders of businesses with low capital requirements that achieve a high sell price because of intangibles such as customer base, brand, intellectual property. TOP’s proposal is light on companies such as TradeMe, Infometrics, Charlie’s, 42 Below, while it would hit hard companies like F&P that need to invest in substantial equipment.
Finally, since capital gains taxes are widely used elsewhere, there’s plenty of other examples to look to and pick what works and eliminate the loopholes from the beginning.
My reading of their tax policy is more as a capital investment policy. The tax is on equity, so is designed to encourage property owners to borrow against their property and to invest in income generating businesses.
A noble aspiration, and a very correct observation of what is wrong with all our wealth tied up in non-productive real estate, and Morgan’s ideas may be a solution to that, but there’s some serious transition issues around how we get there.
Also, on the face of it, a huge structural subsidy (even more of a licence to print money) in favour of the banks.
Encouraging debt can’t be a good thing. I know of a bunch of businesses that went under 2009/2010. Most of them were running on borrowed money. I know a bunch of businesses that survived 2009/2010 with just a bit of belt-tightening. Most of them were debt-free or nearly. The correlation was pretty good.
Let alone encouraging more mortgage debt to avoid paying tax to live in your own home…
Seems to me a better way to encourage investment in more productive sectors is to clean up the financial shenanigans that make non-property investment so unattractive in NZ.
Yeah, I’m not a fan of it for those reasons too. The whole thing looks like a few rather noble ideas with rather poorly thought out execution. But that’s how Morgan operates.
You’re on the button about this problem needing a carrot approach to make productive investment safer than hence more attractive than real estate. It’s the financial markets that need the stick, not the property owners.
That’s a bit too generic a statement. A lot of new investment is debt funded so any form of encouraging investment is going to encourage debt. The problem occurs when your getting a lot of debt taken on which is chasing capital gains anticipated due to expanding underlying debt levels.
In terms of Morgans policy proposals, I doubt that the indirect measures like tax changes will have much effect. Even a capital gains tax has worked where? If we were serious about stopping the housing bubble in NZ then you need to prevent competition in taking on more debt directly. The LVR ratio is a start but needs to apply property by property (to stop competition between borrowers) and the cap could be on all borrowing, and lower. Also its still tied into the valuations, so make it loan to rental income to serious stop the competition in who can take on the biggest loan at purchase time.
Cleaning up the share market and dodgy practices there would do a lot to improve investment, but it will take a long while to kick in, many people have been scammed in the past and have a long memory.
I too doubt capital gains taxes will do much to slow the housing bubble inflating.
CGT is more an equity argument about those that benefit from a societal environment that allows capital investment to be protected and grow being required to contribute something back to maintaining that society. Instead of parasitically keeping it all in their pocket like they do now in NZ.
I don’t really believe in that fairness arguments. If some people are profiting off of others falling into significant indebitedness, that is unfair and problematic for society even if the government is taking a cut or even a very significant cut. If Capital Gains Taxes actually work then they need to be set at levels where they collect very little revenue because the underlying behavior is being discouraged by them. On the other hand I don’t think I have seen any examples of them working to actually achieve that.
My reasoning around Morgan’s tax policies is that essentially he believes the market is fundamentally pretty rational and so if profit is discouraged by taxation then this behavior will desist. I don’t think the market is anywhere near that rational, there are plenty of analysis saying that essentially many property investors are already losing money with their housing speculation and would get better returns with more productive investments anyway.
“A lot of new investment is debt funded so any form of encouraging investment is going to encourage debt. The problem occurs when your getting a lot of debt taken on which is chasing capital gains anticipated due to expanding underlying debt levels.”
The problem occurs when the interest paid gobbles up profit to the extent that little or no income tax is paid. Banks, however, don’t invest in businesses; they lend to investors, whether proprietors or shareholders, who do the investing. The trouble is that monies borrowed represent a personal benefit to the borrower since he is provided thereby with funds to invest in, and own, a business or property, and of course interest is the cost of that personal benefit, and personal benefits, while normally not tax deductible (this why we have fringe benefit tax), seem to have been deemed deductible in the case of interest.
Getting rid of deductibility of interest for tax purposes would probably mitigate many problems.
Banks do lend to businesses, interest is only deductible for the payer of the interest, so if interest is being deducted before profits are taxed then the business is making the interest payments.
We don’t want investment in productive businesses because they pay more tax to the government (which is pretty much irrelevant). We want that because it avoids the economy being a contest in speculation, which is prone to busts. Getting rid of interest deductibility is unlikely to solve that problem, though it is likely to make borrowing have a higher interest cost which will likely hamper investment in productive business as well as speculation. That kind of measure needs to be carefully targeted at speculative businesses.
“Banks do lend to businesses, interest is only deductible for the payer of the interest, so if interest is being deducted before profits are taxed then the business is making the interest payments.”
Businesses don’t pay interest; the person to whom the monies were lent, ie the proprietor, pays the interest. It doesn’t matter whether the proprietor pays it from his “business” account or from his “personal” account, it is the proprietor who is paying.
The issue is not the effect that non deductibility would have on this or that business. The issue is whether it is fair that someone who puts his own savings into (say) a rental property, and earns a decent profit, pays a respectable amount of tax, while someone who borrows heavily to invest pays very little tax because most of his profit is being eaten up by a personal expense.
of course they can, but will the government be able to continue paying the Accommodation Supplement that would allow Landlords to charge higher rents?
and how long before we have riots in the streets and would that be a good outcome?
Hmm, but maybe that is the intended outcome, destroy a bit of real estate, lock up a few people, insurance pay out, rebuild, charge higher rents.
so how do you like your current society vs the one i just painted?
cause it seems that the ‘burn down the house in which you are living’ is a thing at the moment with certain people on the left and the right.
“Seems to me a capital gains tax, as used in most of the rest of the world, is a much fairer, less distortionary way of taxing capital. I favour including everything, even family homes (with rollover provisions for family homes).”
A capital gain is still capital, but it represents only a small part of the capital that exists.
It is therefore difficult to see how taxing capital gains is “fairer” or “less distortionary”
when other capital is not being taxed.
“Finally, since capital gains taxes are widely used elsewhere, there’s plenty of other examples to look to and pick what works and eliminate the loopholes from the beginning.”
CGTs don’t seem to have “worked” elsewhere. Countries that have them seem to have just as many problems with property as we have here. I suspect the reason most countries persist with them is because they are a relatively easy to collect form of revenue. That they do not have much effect on interest rates probably makes them popular with the banks as well.
Great thread of discussion. At Gareth Morgan recent meeting he talked about stamp duty and estate duty that used to be ways of clipping tickets of valuable assets. Seems good idea if not set unreasonably high. Farms shouldn’t have to be sold to pay death duties etc.
It would be fairer to bring down GST to 7andhalf as I envisage, and make up the slack with tax on transferring properties. Any being sold under 5 years ownership, having a good tax on the difference between purchase and sale, only allowing for CPI and reasonable costs. (That way there would be a little correction for the huge difference between CPI and the burst in house prices.)
This is only connected in that it involves business people playing with their money in NZ to help them to get all of our money of us. Old news bac in 2012 but for lovers of interesting back stories might fill in gaps
Why is urban land expensive in NZ? Because it is just a way to gain Monopoly
money.
The property was acquired by Victoria Properties Consolidated in 2005 for $5.4 million with an optimistic forecast of potential value of $18 million to be gleaned from section sales after rezoning….
About 150 mainly Otago investors have money in the Victoria group, which is managed by Britannia Management, whose directors include National Party director and Canterbury Westland chairman Roger Bridge and financial adviser Craig Myles.
Probably where some of the payout from Hubbard’s South Canterbury Finance debacle went.
Agreed. Maybe after their Republican Messiah bloodies their collective noses, they’ll feel a little differently. Although, judging by some of the comments Trump’s supporters have made in the past, coherent thought is simply a bridge too far.
Trump: "Major meeting" tonight at Mar-a-Lago to "talk all about the VA"*turns to VA Sec.*Will you be there?*awkwardly shakes head no* pic.twitter.com/Up2tPEIxbO— Steve Kopack (@SteveKopack) March 17, 2017
this was after their meeting and i would suggest that Mutti just did not give him the love he so thinks he deserves.
Also there is that Mutti thing that they orange one has, unless the chick is young, has big boobs and a fine ass he is not interested. All other women, especially ones with guts and smarts remind him to much of his mother. And he can’t bribe his mother into fucking him for a pot of gold, cause shes seen it all before and he aint anything special. 🙂
it takes a lot of guts to board a ship at seventeen and to move to a new country to work as a domestic, even if you have sisters that already live and work there.
Mother Trump had guts and in the end lived glory, as she did well in the US.
Hekia has been attempting to bully Salisbury School into closure for many years now, by denying girls the best facility in the country for their needs, instead preferring they use a ‘wrap around’ service.
Once again we discover another story of the struggle a family has gone through over a number of years to have their daughter attend Salisbury School.
Finally she has been excepted, Salisbury will change and improve her life and that of her family tremendously.
I wish this family all the very best, your girl is going to love Salisbury, so happy you finally got there.
A change of government will help to keep one of the most valuable schools in the country open.
Some wrap around services must be making a fortune, Salisbury school is not about making money, it’s about improving lives. Would be interesting to know who is making money from the wrap around services, someone is.
Have you any idea what ‘wrap around services’ are or are they just double speak for actually doing nothing?
I’m not surprised they’ve been trying to shut down what seems to me to be a great school – they’ve been making it harder and harder for children with additional needs to access suitable education.
For that matter, they’ve been busy screwing the whole education system from top to bottom to suit their own ideological ends – they’ve got to go!!!
Have you any idea what ‘wrap around services’ are or are they just double speak for actually doing nothing?
I suspect that it’s doublespeak for the average, run of the mill school that suits most children but is detrimental to those that are outside the norm.
Yesah Salisbury School is an incredible place which saves lives.
Sometimes residential care is the best option rather than mainstream school. And the way this school prepares the girls for life is outstanding. Like when they reach a certain age they are moved to little villas to live with each other, on site with staff support, to give them life skills in a supportive controlled environment. Awesome.
They get to experience a strong sense of community, not only in the school, but also in Richmond itself and sometimes that will be the first time some girls have ever felt a sense of community or inclusion.
Hekia has been hell bent on closing Salisbury down, it’s more like a competition to her, the urge to win. People shouldn’t play games like that with the lives of others.
It’s so hard for me to understand why push the wrap around services which haven’t worked for some families, rather than supporting a facility that has been up and running and making a huge difference for decades. So I begin to wonder things like… do her friends have a wrap around service business?
Should some parents not be told about the school from the beginning as an option?
Anyways, Salisbury is a very very good school, huge respect for all the staff whom have made it so amazing over the many years it has been operating, and looking forward to seeing the roll increase in the future, rather than more road blocks, and more suffering from the outgoing government.
Connections?
Rangiora High School has Trust land. The Ministry wants to grab the control off the BOT so they can sell the land. So destroy Principal and BOT.
Salisbury has valuable land. The Ministry wants to grab the control off the BOT so they can sell the land. So destroy Principal and BOT and strangle the entrance for the girls.
Good on Parata! Yay!
Kempthorne wants the school to remain open, and is vocally strong about his support, so many MP’s are as well, Tracey Martin, Catherine Delahunty, Chris Hipkins, Damien O’Connor and others, am so thankful to them for their ongoing support
Beware of moving from Auckland Council (Corporate) Controlled Organisations (CCOs) to Public-Private Partnerships (PPPs).
This upcoming ‘review’ needs to, in my view, make a top priority of returning all public services provided by Auckland Council and CCOs back to ‘in house’ service provision under the genuine, not-for-profit public service model.
Which was never broken before we had two doses of Neo-liberal ‘Rogernomic$’ reforms forced upon the public majority of Aucklanders.
In my view, we also need a huge clean out of ex-private sector businesspeople from ‘public servant’ roles.
How do people from the private sector ‘transmogrify’ into genuine public servants – serving the public and the public interest?
In my view – they don’t.
They’re from Planet ‘Private Profit’ and come from a completely different background and culture
– make money for shareholders – look after yourself and your mates?
Time for some BIG changes!
OPEN THE BOOKS!
CUT OUT THE CONSULTANTS ,
CONTRACTORS and CCOs!
BRING COUNCIL PUBLIC SERVICES BACK ‘IN HOUSE’ UNDER THE ‘NOT-FOR-PROFIT’ PUBLIC SERVICE MODEL!
This upcoming ‘review’ needs to, in my view, make a top priority of returning all public services provided by Auckland Council and CCOs back to ‘in house’ service provision under the genuine, not-for-profit public service model.
That’s would be the desired end result but the review should do an unbiased cost/benefit review. If they do that then moving all back in house should be a no-brainer.
The PPP model simply costs too much for limited returns that often makes things worse.
“If Forest & Bird gets its way, marine farming could never be considered…”
While “Forest & Bird Otago/Southland regional manager Sue Maturin said it did not consider marine farming to be appropriate for internationally significant and special places such as Fiordland and the wild pristine waters of Stewart Island, or the marine mammal sanctuaries for Hector’s dolphins in Curio Bay and Te Wae Wae”.
They’re talking about two bays by the sounds of things. Sounds reasonable.
“He was concerned the Wellington-based organisation was “not prepared to compromise” and said court action would cost a lot of money for Southland ratepayers.”
I’m sure all the Southland F and B members and volunteers who work in the area will love that bit.
Weka Interested to know more about 2 Bays… interested in hearing more.. Link Please…
Seems a default setting/response whenever these sorts of questions are raised…
“court action would cost a lot of money for Southland ratepayers.” (or any her Ratepayers… Why is is it that only Ratepayers count when these are National issues! Just like Dairy Intensification!
Northland/Westland/Canterbury/Horowhenua… wherever… Why is it that only Ratepayers, (As I am), only allowed to comment on/have impute into “district” issues”
Surely Marine Farming in Fiordland or Stewart Island, (as part of NZ), or the planet! If it’s unsustainable/ and/or inappropriate,( In some circumstance) (Just like Cows in the McKenzie Country, or Canterbury…) Why is it that these issues can only be allowed/commented on by _”Rate Payers”..
When there is so much apathy locally surely there’s a need for other parties to put their 10 cents worth in. For the Good of All!
Or can the few in Jackson’s Bay, ( or the Westland Council) determine whats Best…
I only know about Curio and Te Waewae Bays issues from the article (although I have been to both places too). I trust F and B’s judgement. Hopefully Robert Guyton will comment. He would also know if there is a place for non-rate payers to have input.
I also think getting it written into the Regional Policy Statement is critical, because so much time, energy, effort and resource is being wasted having to refight these battles over and over and over.
My concern is that too many people are saying we need to put a price on water. I think we should have a moratorium on all new exports until we sort this out.
If we’re going to keep with a market system then we most definitely need to put a price on it.
Me, I’d like to put science on it and determine just how much water we can use before it becomes unsustainable.
I’m also pretty sure that we’re well into the unsustainable usage now and it’s just getting worse as the farms suck up more water and the water bottlers export it.
“If we’re going to keep with a market system then we most definitely need to put a price on it”
Quite. Which is why I think focussing on the price rather than a moratorium is buying into neoliberal framing. Have the conversation first about water being life, then talk about the limits, then see what if any price is needed. But then I think bottling water for profit is up there in terms of evil alongside Monsanto or chopping down rainforest to make burgers.
“Me, I’d like to put science on it and determine just how much water we can use before it becomes unsustainable.
I’m also pretty sure that we’re well into the unsustainable usage now and it’s just getting worse as the farms suck up more water and the water bottlers export it.”
I also believe we are well past anything remotely sustainable. I’m not sure we could even determine what sustainable is under the current system. Industrial export dairying would have to stop for a start, and no-one even wants to talk about that apart from those of us who have nothing to lose. And Rachel Steward 🙂
Look at the bigger picture. Bottled water is a pollutant because of plastic’s accumulation in the environment (e.g. the Pacific gyre), and because plastic is an endocrine disruptor.
Exporting water has a ridiculous carbon cost. It actively supports the despoilment of local aquifers and watersheds in the places it is being sold. There is a reason people need to ship water from here. It’s daft beyond all reasoning to be moving water from one side of the planet to another using fossil fuels, but even if that were sustainable, it doesn’t get around why people need the water in the first place. Making money off other people’s destruction of the environment is not only amoral, it’s going to back lash against us. You think people with bigger sticks won’t come and take water from us if we let the civilisation get to the point of mass water wars?
“It is very little water that the bottlers are exporting.”
That argument I am not convince about. It’s the overall take from a catchment that counts, and if an aquifer is depleting (e.g. farming), then taking out water for bottling is still a further depletion. We also don’t know what the demand will be going forward except that it’s most likely to increase and may increase exponentially. We should be setting limits now, not doing what we have done with dairy and seeing how far we can push the plunder. From what I understand replenishing an aquifer is not a quick or easy thing, and by the time we get to that point we will be well into direct climate change issues.
We’re already at the point of fucking with the groundwater beyond our ken,
Everyone agrees that the world has real physical limits. The interesting bit starts when you talk about what those limits are, how close we are to exceeding them, and what should be done about it.
My point is that water bottling (as opposed to dairy) takes you only a very little closer to reaching a hard limit.
Everyone agrees that the world has real physical limits.
That’s not actually true. Many of the conservative bent don’t think that the world has limits. They’re easy to spot as they insist that we can just keep using more and more of the worlds limited resources with consequences.
Bottling water is fine because it uses so little. Owning and running a car is fine because it uses so little.
They don’t seem to understand the effect of multiplication and that it’s not just a single bottling plant and just one car being but many. That the demands upon those scarce resources isn’t just one thing but many and they all have their cost that reduces amount available.
You cannot have your cake and eat it too.
But very few people understand that. Even, IMO, most economists don’t get it despite it being at the root of their profession.
My point is that water bottling (as opposed to dairy) takes you only a very little closer to reaching a hard limit.
But what is the limit? Without knowing that how can you say that water bottling doesn’t take us over it?
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Hi,Today’s Webworm features a new short film from documentary maker Giorgio Angelini. It’s about Luigi Mangione — but it’s also, really, about everything in America right now.Bear with me.Shortly after I sent out my last missive from the fires on Wednesday, one broke out a little too close to home ...
So soon just after you've goneMy senses sharpenBut it always takes so damn longBefore I feel how much my eyes have darkenedFear hangs in a plane of gun smokeDrifting in our roomSo easy to disturb, with a thought, with a whisperWith a careless memorySongwriters: Andy Taylor / John Taylor / ...
Can we trust the Trump cabinet to act in the public interest?Nine of Trump’s closest advisers are billionaires. Their total net worth is in excess of $US375b (providing there is not a share-market crash). In contrast, the total net worth of Trump’s first Cabinet was about $6b. (Joe Biden’s Cabinet ...
Welcome back to our weekly roundup. We hope you had a good break (if you had one). Here’s a few of the stories that caught our attention over the last few weeks. This holiday period on Greater Auckland Since our last roundup we’ve: Taken a look back at ...
Sometimes I feel like I don't have a partnerSometimes I feel like my only friendIs the city I live in, The City of AngelsLonely as I am together we crySong: Anthony Kiedis, Chad Smith, Flea, John Frusciante.A home is engulfed in flames during the Eaton fire in the Altadena area. ...
Open access notablesLarge emissions of CO2 and CH4 due to active-layer warming in Arctic tundra, Torn et al., Nature Communications:Climate warming may accelerate decomposition of Arctic soil carbon, but few controlled experiments have manipulated the entire active layer. To determine surface-atmosphere fluxes of carbon dioxide and ...
It's election year for Wellington City Council and for the Regional Council. What have the progressive councillors achieved over the last couple of years. What were the blocks and failures? What's with the targeting of the mayor and city council by the Post and by central government? Why does the ...
Over the holidays, there was a rising tide of calls for people to submit on National's repulsive, white supremacist Principles of the Treaty of Waitangi Bill, along with a wave of advice and examples of what to say. And it looks like people rose to the occasion, with over 300,000 ...
The lie is my expenseThe scope of my desireThe Party blessed me with its futureAnd I protect it with fireI am the Nina The Pinta The Santa MariaThe noose and the rapistAnd the fields overseerThe agents of orangeThe priests of HiroshimaThe cost of my desire…Sleep now in the fireSongwriters: Brad ...
This is a re-post from the Climate BrinkGlobal surface temperatures have risen around 1.3C since the preindustrial (1850-1900) period as a result of human activity.1 However, this aggregate number masks a lot of underlying factors that contribute to global surface temperature changes over time.These include CO2, which is the primary ...
There are times when movement around us seems to slow down. And the faster things get, the slower it all appears.And so it is with the whirlwind of early year political activity.They are harbingers for what is to come:Video: Wayne Wright Jnr, funder of Sean Plunket, talk growing power and ...
Hi,Right now the power is out, so I’m just relying on the laptop battery and tethering to my phone’s 5G which is dropping in and out. We’ll see how we go.First up — I’m fine. I can’t see any flames out the window. I live in the greater Hollywood area ...
2024 was a tough year for working Kiwis. But together we’ve been able to fight back for a just and fair New Zealand and in 2025 we need to keep standing up for what’s right and having our voices heard. That starts with our Mood of the Workforce Survey. It’s your ...
Time is never time at allYou can never ever leaveWithout leaving a piece of youthAnd our lives are forever changedWe will never be the sameThe more you change, the less you feelSongwriter: William Patrick Corgan.Babinden - Baba’s DayToday, January 8th, 2025, is Babinden, “The Day of the baba” or “The ...
..I/We wish to make the following comments:I oppose the Treaty Principles Bill."5. Act binds the CrownThis Act binds the Crown."How does this Act "bind the Crown" when Te Tiriti o Waitangi, which the Act refers to, has been violated by the Crown on numerous occassions, resulting in massive loss of ...
Everything is good and brownI'm here againWith a sunshine smile upon my faceMy friends are close at handAnd all my inhibitions have disappeared without a traceI'm glad, oh, that I found oohSomebody who I can rely onSongwriter: Jay KayGood morning, all you lovely people. Today, I’ve got nothing except a ...
Welcome to 2025. After wrapping up 2024, here’s a look at some of the things we can expect to see this year along with a few predictions. Council and Elections Elections One of the biggest things this year will be local body elections in October. Will Mayor Wayne Brown ...
Canadians can take a while to get angry – but when they finally do, watch out. Canada has been falling out of love with Justin Trudeau for years, and his exit has to be the least surprising news event of the New Year. On recent polling, Trudeau’s Liberal party has ...
This is a re-post from Yale Climate Connections Much like 2023, many climate and energy records were broken in 2024. It was Earth’s hottest year on record by a wide margin, breaking the previous record that was set just last year by an even larger margin. Human-caused climate-warming pollution and ...
Submissions on National's racist, white supremacist Principles of the Treaty of Waitangi Bill are due tomorrow! So today, after a good long holiday from all that bullshit, I finally got my shit together to submit on it. As I noted here, people should write their own submissions in their own ...
Ooh, baby (ooh, baby)It's making me crazy (it's making me crazy)Every time I look around (look around)Every time I look around (every time I look around)Every time I look aroundIt's in my faceSongwriters: Alan Leo Jansson / Paul Lawrence L. Fuemana.Today, I’ll be talking about rich, middle-aged men who’ve made ...
A listing of 26 news and opinion articles we found interesting and shared on social media during the past week: Sun, December 29, 2024 thru Sat, January 4, 2025. This week's roundup is again published soleley by category. We are still interested in feedback to hone the categorization, so if ...
Hi,The thing that stood out at me while shopping for Christmas presents in New Zealand was how hard it was to avoid Zuru products. Toy manufacturer Zuru is a bit like Netflix, in that it has so much data on what people want they can flood the market with so ...
And when a child is born into this worldIt has no conceptOf the tone of skin it's living inAnd there's a million voicesAnd there's a million voicesTo tell you what you should be thinkingSong by Neneh Cherry and Youssou N'Dour.The moment you see that face, you can hear her voice; ...
While we may not always have quality political leadership, a couple of recently published autobiographies indicate sometimes we strike it lucky. When ranking our prime ministers, retired professor of history Erik Olssen commented that ‘neither Holland nor Nash was especially effective as prime minister – even his private secretary thought ...
Baby, be the class clownI'll be the beauty queen in tearsIt's a new art form, showin' people how little we care (yeah)We're so happy, even when we're smilin' out of fearLet's go down to the tennis court and talk it up like, yeah (yeah)Songwriters: Joel Little / Ella Yelich O ...
Open access notables Why Misinformation Must Not Be Ignored, Ecker et al., American Psychologist:Recent academic debate has seen the emergence of the claim that misinformation is not a significant societal problem. We argue that the arguments used to support this minimizing position are flawed, particularly if interpreted (e.g., by policymakers or the public) as suggesting ...
What I’ve Been Doing: I buried a close family member.What I’ve Been Watching: Andor, Jack Reacher, Xmas movies.What I’ve Been Reflecting On: The Usefulness of Writing and the Worthiness of Doing So — especially as things become more transparent on their own.I also hate competing on any day, and if ...
This is a re-post from Yale Climate Connections by John Wihbey. A version of this article first appeared on Yale Climate Connections on Nov. 11, 2008. (Image credits: The White House, Jonathan Cutrer / CC BY 2.0; President Jimmy Carter, Trikosko/Library of Congress; Solar dedication, Bill Fitz-Patrick / Jimmy Carter Library; Solar ...
Morena folks,We’re having a good break, recharging the batteries. Hope you’re enjoying the holiday period. I’m not feeling terribly inspired by much at the moment, I’m afraid—not from a writing point of view, anyway.So, today, we’re travelling back in time. You’ll have to imagine the wavy lines and sci-fi sound ...
Completed reads for 2024: Oration on the Dignity of Man, by Giovanni Pico della Mirandola A Platonic Discourse Upon Love, by Giovanni Pico della Mirandola Of Being and Unity, by Giovanni Pico della Mirandola The Life of Pico della Mirandola, by Giovanni Francesco Pico Three Letters Written by Pico ...
Welcome to 2025, Aotearoa. Well… what can one really say? 2024 was a story of a bad beginning, an infernal middle and an indescribably farcical end. But to chart a course for a real future, it does pay to know where we’ve been… so we know where we need ...
Welcome to the official half-way point of the 2020s. Anyway, as per my New Years tradition, here’s where A Phuulish Fellow’s blog traffic came from in 2024: United States United Kingdom New Zealand Canada Sweden Australia Germany Spain Brazil Finland The top four are the same as 2023, ...
Completed reads for December: Be A Wolf!, by Brian Strickland The Magic Flute [libretto], by Wolfgang Amadeus Mozart and Emanuel Schikaneder The Invisible Eye, by Erckmann-Chatrian The Owl’s Ear, by Erckmann-Chatrian The Waters of Death, by Erckmann-Chatrian The Spider, by Hanns Heinz Ewers Who Knows?, by Guy de Maupassant ...
Well, it’s the last day of the year, so it’s time for a quick wrap-up of the most important things that happened in 2024 for urbanism and transport in our city. A huge thank you to everyone who has visited the blog and supported us in our mission to make ...
Leave your office, run past your funeralLeave your home, car, leave your pulpitJoin us in the streets where weJoin us in the streets where weDon't belong, don't belongHere under the starsThrowing light…Song: Jeffery BuckleyToday, I’ll discuss the standout politicians of the last 12 months. Each party will receive three awards, ...
Hi,A lot’s happened this year in the world of Webworm, and as 2024 comes to an end I thought I’d look back at a few of the things that popped. Maybe you missed them, or you might want to revisit some of these essay and podcast episodes over your break ...
Hi,I wanted to share this piece by film editor Dan Kircher about what cinema has been up to in 2024.Dan edited my documentary Mister Organ, as well as this year’s excellent crowd-pleasing Bookworm.Dan adores movies. He gets the language of cinema, he knows what he loves, and writes accordingly. And ...
Without delving into personal details but in order to give readers a sense of the year that was, I thought I would offer the study in contrasts that are Xmas 2023 and Xmas 2024: Xmas 2023 in Starship Children’s Hospital (after third of four surgeries). Even opening presents was an ...
Heavy disclaimer: Alpha/beta/omega dynamics is a popular trope that’s used in a wide range of stories and my thoughts on it do not apply to all cases. I’m most familiar with it through the lens of male-focused fanfic, typically m/m but sometimes also featuring m/f and that’s the situation I’m ...
Hi,Webworm has been pretty heavy this year — mainly because the world is pretty heavy. But as we sprint (or limp, you choose) through the final days of 2024, I wanted to keep Webworm a little lighter.So today I wanted to look at one of the biggest and weirdest elements ...
A listing of 23 news and opinion articles we found interesting and shared on social media during the past week: Sun, December 22, 2024 thru Sat, December 28, 2024. This week's roundup is the second one published soleley by category. We are still interested in feedback to hone the categorization, ...
We’ll have a climate change ChristmasFrom now until foreverWarming our hearts and mindsAnd planet all togetherSpirits high and oceans higherChestnuts roast on wildfiresIf coal is on your wishlistMerry Climate Change ChristmasSong by Ian McConnellReindeer emissions are not something I’d thought about in terms of climate change. I guess some significant ...
KP continues to putt-putt along as a tiny niche blog that offers a NZ perspective on international affairs with a few observations about NZ domestic politics thrown in. In 2024 there was also some personal posts given that my son was in the last four months of a nine month ...
The Green Party has welcomed the provisional ceasefire deal between Israel and Hamas, and reiterated its call for New Zealand to push for an end to the unlawful occupation of Palestine. ...
The Green Party welcomes the extension of the deadline for Treaty Principles Bill submissions but continues to call on the Government to abandon the Bill. ...
Complaints about disruptive behaviour now handled in around 13 days (down from around 60 days a year ago) 553 Section 55A notices issued by Kāinga Ora since July 2024, up from 41 issued during the same period in the previous year. Of that 553, first notices made up around 83 ...
The time it takes to process building determinations has improved significantly over the last year which means fewer delays in homes being built, Building and Construction Minister Chris Penk says. “New Zealand has a persistent shortage of houses. Making it easier and quicker for new homes to be built will ...
Minister of Internal Affairs Brooke van Velden is pleased to announce the annual list of New Zealand’s most popular baby names for 2024. “For the second consecutive year, Noah has claimed the top spot for boys with 250 babies sharing the name, while Isla has returned to the most popular ...
Work is set to get underway on a new bus station at Westgate this week. A contract has been awarded to HEB Construction to start a package of enabling works to get the site ready in advance of main construction beginning in mid-2025, Transport Minister Simeon Brown says.“A new Westgate ...
Minister for Children and for Prevention of Family and Sexual Violence Karen Chhour is encouraging people to use the resources available to them to get help, and to report instances of family and sexual violence amongst their friends, families, and loved ones who are in need. “The death of a ...
Uia te pō, rangahaua te pō, whakamāramatia mai he aha tō tango, he aha tō kāwhaki? Whitirere ki te ao, tirotiro kau au, kei hea taku rātā whakamarumaru i te au o te pakanga mo te mana motuhake? Au te pō, ngū te pō, ue hā! E te kahurangi māreikura, ...
Health Minister Dr Shane Reti says people with diabetes and other painful conditions will benefit from a significant new qualification to boost training in foot care. “It sounds simple, but quality and regular foot and nail care is vital in preventing potentially serious complications from diabetes, like blisters or sores, which can take a long time to heal ...
Associate Health Minister with responsibility for Pharmac David Seymour is pleased to see Pharmac continue to increase availability of medicines for Kiwis with the government’s largest ever investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the government,” says Mr Seymour. “When this government assumed ...
Mā mua ka kite a muri, mā muri ka ora e mua - Those who lead give sight to those who follow, those who follow give life to those who lead. Māori recipients in the New Year 2025 Honours list show comprehensive dedication to improving communities across the motu that ...
Minister of Internal Affairs Brooke van Velden is wishing all New Zealanders a great holiday season as Kiwis prepare for gatherings with friends and families to see in the New Year. It is a great time of year to remind everyone to stay fire safe over the summer. “I know ...
From 1 January 2025, first-time tertiary learners will have access to a new Fees Free entitlement of up to $12,000 for their final year of provider-based study or final two years of work-based learning, Tertiary Education and Skills Minister Penny Simmonds says. “Targeting funding to the final year of study ...
Source: The Conversation (Au and NZ) – By Alexandra Sherlock, Lecturer, School of Fashion and Textiles, RMIT University Australian-owned brand UGG Since 1974 has announced it will change its name to “Since 74” for sales outside Australia and New Zealand. There has been a long-running battle over the rights ...
The committee has agreed to split into two sub-committees to increase the number of people it can hear from in the time available. Each sub-committee will meet for 30 hours total, together making up 60 of the 80 planned hours of hearings. ...
Source: The Conversation (Au and NZ) – By Ian Parmeter, Research scholar, Middle East studies, Australian National University The ceasefire agreement between Israel and Hamas, to come into effect on Sunday, has understandably been welcomed by the overwhelming majority of Israelis and Palestinians. Israelis are relieved that a process for ...
Source: The Conversation (Au and NZ) – By Christine Carson, Senior Research Fellow, School of Medicine, The University of Western Australia Over the past several days, the world has watched on in shock as wildfires have devastated large parts of Los Angeles. Beyond the obvious destruction – to landscapes, homes, ...
Source: The Conversation (Au and NZ) – By Rose Cairns, Senior Lecturer in Pharmacy, NHMRC Emerging Leadership Fellow, University of Sydney AtlasStudio/Shutterstock TikTok and Instagram influencers have been peddling the “Barbie drug” to help you tan. But melanotan-II, as it’s called officially, is a solution that’s too good to ...
Source: The Conversation (Au and NZ) – By Paula Jarzabkowski, Professor in Strategic Management, The University of Queensland A series of wildfires in Los Angeles County have caused widespread devastation in California, including at least 24 deaths and the destruction of more than 12,000 homes and structures. Thousands of residents ...
COMMENTARY:By Monika Singh The lack of women representation in parliaments across the world remains a vexed and contentious issue. In Fiji, this problem has again surfaced for debate in response to Deputy Prime Minister Manoa Kamikamica’s call for a quota system to increase women’s representation in Parliament. Kamikamica was ...
What compels someone of significant status in society to break the law, repeatedly, might be the same reason I did as a poor teenager. Former Green MP Golriz Ghahraman, who left parliament a year ago today following revelations of shoplifting, is now at the centre of another shoplifting complaint. As ...
Source: The Conversation (Au and NZ) – By Kath Albury, Professor of Media and Communication and Associate Investigator, ARC Centre of Excellence for Automated Decision-Making + Society, Swinburne University of Technology natamrli/Shutterstock Last week, social media giant Meta announced major changes to its content moderation practices. This includes an ...
"Gisborne has suffered from housing underdevelopment and a lack of supply, coupled with damage from severe weather events," Minister Tama Potaka says. ...
Source: The Conversation (Au and NZ) – By Marta Andhov, Associate Professor, Law School, University of Auckland, Waipapa Taumata Rau Iconic Bestiary/Shutterstock They say a picture is worth a thousand words. But in the world of legal contracts, pictures can be worth even more by making complicated concepts more ...
Asia Pacific Report The Committee to Protect Journalists (CPJ) has called on Egyptian, Palestinian and Israeli authorities to allow foreign journalists into Gaza in the wake of the three-phase ceasefire agreement set to to begin on Sunday. The New York-based global media watchdog urged the international community “to independently investigate ...
The agreement will ease Palestinians’ suffering, but international agencies will struggle to meet the massive need for humanitarian relief. This is an excerpt from The World Bulletin, our weekly global current affairs newsletter exclusively for Spinoff Members. Sign up here. We start the World Bulletin’s year with a rare piece of ...
Source: The Conversation (Au and NZ) – By Marika Sosnowski, Postdoctoral research fellow, The University of Melbourne After 467 days of violence, a ceasefire agreement between Hamas and Israel has been reached and will come into effect on Sunday, pending Israeli government approval. This agreement will not end the ...
We love to suffer through tramps to enjoy natural beauty… except when we don’t.It can feel a bit shitty to stay inside and wallow all day when it’s nice out. Hot sunlight hits your window and your mum’s voice rings around in your head: get outside and enjoy the ...
Requests for official information involving potentially damning correspondence are totally legitimate – but have been put in the ‘too hard basket' by officials refusing to properly follow the Local Government Official Information and Meetings ...
With the local body elections in October, a long-awaited upgrade of Courtenay Place, and big changes for water, housing and the economy, it’s set to be another dramatic year for the capital city. The Golden Mile Conservative city councillors made a last-minute attempt in November to scrap the Golden Mile ...
I’ve already broken most of my resolutions, and it’s only January. How do I salvage my clean slate? Want Hera’s help? Email your problem to helpme@thespinoff.co.nz Dear Hera,It’s only 6 days into the new year, and I’m already ready for 2026. I made five resolutions and have already broken ...
Source: The Conversation (Au and NZ) – By Samuel Cornell, PhD Candidate, UNSW Beach Safety Research Group + School of Population Health, UNSW Sydney byvalet/Shutterstock Australia is considered a nation of beach lovers. But with all this water surrounding us, drownings remain tragically common. At least 55 people have ...
Source: The Conversation (Au and NZ) – By Uri Gal, Professor in Business Information Systems, University of Sydney Sergii Gnatiuk/Shutterstock Over the past two years, generative artificial intelligence (AI) has captivated public attention. This year signals the beginning of a new phase: the rise of AI agents. AI ...
Source: The Conversation (Au and NZ) – By Dorina Pojani, Associate Professor in Urban Planning, The University of Queensland shisu_ka/Shutterstock A wide range of voices in the Australian media have been sounding the alarm about the phenomenon of “forever-renting”. This describes a situation in which individuals or families ...
Source: The Conversation (Au and NZ) – By Liz Giuffre, Senior Lecturer in Communication, University of Technology Sydney Originally known as 2JJ, or Double Jay, when it launched in Sydney at 11am on January 19 1975, Triple J has since become the national youth network. The station now encompasses broadcast ...
Currently, under 18s are legally allowed to buy Lotto tickets. That’s about to change, explains The Bulletin’s Stewart Sowman-Lund. To receive The Bulletin in full each weekday, sign up here. ...
The anonymised database is crucial to the government's social investment approach to funding programmes - but was incapable of doing so without extra investment. ...
Opinion: As I reflect on the tumultuous year that has passed and look forward to the year ahead, I wonder what it will hold.For me I can’t look past the middle of February right now as that is when my dissertation must be submitted, hopefully completing my master’s degree. It ...
Opinion: 2025 is a critical year for Aotearoa New Zealand’s natural world. With the entire environmental management system slated for reform, it’s the most important year in decades. If the hot-headed excesses of last year’s law-making continue, it will lead to terrible long-term outcomes. But if sense prevails, we could ...
An anticipated move to tax charities’ business operations would reduce charitable activity and may cause businesses to leave New Zealand, a lawyer warns. In a push to find new sources of revenue the Government is looking at implementing a charity tax, which would see the business arm of companies such as ...
As parliamentary staff start to read through thousands of submissions on the Treaty principles bill, Shanti Mathias explores how submitting became the go-to way to engage with politics – and asks whether it makes a difference. While the exact number is currently being confirmed, it seems almost certain that submissions ...
A plan about ferries, highly anticipated select committee hearings and a new deputy prime minister are all on the cards for Aotearoa in the 2025 political year. Here’s a rundown of what to expect and when to expect it. The ‘brace for impact, it’s coming soon’ bitsThe political calendar ...
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http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11820240
””It is absolutely extraordinary that they are able to get away with paying zero tax in this country. I really like Apple products – they’re incredibly innovative – but it looks like their tax department is even more innovative than their product designers,” Shaw said.”
apple ripping nz of
Why don’t we just have a 10% tax on all money as it leaves the country ,?
Suspect this would infringe our international commitments
So does being a tax haven.
Thanks to the National Party, we are in no position to say jack shit about people who avoid tax.
Tobin tax, about same size as CC charge.
Very good work by Mr Nippert again. John Campbell has also been on the Apple case for more than a year – trying to get some explanation from Apple about their activities in NZ.
According to Nippert, Apple has at least several dozen employees in NZ. It’s NZ sales are handled by its Aussie office – so can claim not to have a business here, I think. Legal but morally dodgy.
But aren’t most of the products made by cheap labour in Asian countries?
But NZ companies tend not to be on the same scale as the likes of Apple. So NZ ultimately is the loser. We’d be better off if all companies, NZ and others, paid a fair share of the tax in countries where they sell products and get some income.
Although I suspect there is some self / corporate interest there – good on Simon Moutter for sounding more engaged in the country’s welfare than our RW Nact Politicians.
Don’t forget any local competitor is stuck with uncompetative outcomes as they pay onshore tax.
Apple’s ripping every country off. That’s why it keeps all of its profits in tax havens.
And, yes, a Tobin Tax is a remarkably good idea if we’re going to keep offshore ownership.
Hi draco, I seem to recall dear leader saying the havens provided $43m to those who administered them, so be relaxed.
The same reason you pay no tax when buying shit from overseas. Tax isn’t applied in the foreign country in most cases.
sorry you are wrong i don’t spend my time trying to avoid paying for all the good things like schools and medical help
Is the TOP tax policy actually a good idea? Or is it just a brainfart from a mouthy millionaire out-of-touch economist that can only see things in terms of dollars?
http://www.top.org.nz/top1
Most of the argument will no doubt focus on the harmful effects on the asset-rich income-poor, such as the elderly who live in areas where property values have skyrocketed. This policy suggests they build up debt to pay their imputed tax, which destroys their security and peace of mind. Or they sell up and move out, which trashes the idea of community. Basically these problems come about from viewing a home as just another capital asset, which economists only value for producing income. The alternative is a capital gains tax, as used in most of the rest of the world. This gets levied at the time of sale, at the time the property has changed from being a home to just another financial instrument.
But this policy also favours businesses with low capital requirements such as Trademe, Infometrics etc over businesses that require substantial capital investment to produce tangible goods. For instance, this 3D printing firm http://www.rapidman.co.nz/ would have needed to invest a huge chunk up-front to start up their 3D printing business. Slamming them with a tax liability on that investment right from the beginning would be a big disincentive to starting up. But long term, it’s the actually tangible goods businesses that are better for the economy.
http://www.vox.com/new-money/2017/3/16/14939624/tesla-billion-raise-uber
Hitting farmers with a capital tax strikes me as a particularly crap idea. It gives them yet more incentive to try to wring yet more income from their very expensive investment. Do we really want to drive more intensification by changing the tax system to favour it?
The TOP proposal also puts a continuous burden on cashflow. This adds another difficulty to companies going though a rough patch, and may put some under that would otherwise survive.
Seems to me a capital gains tax, as used in most of the rest of the world, is a much fairer, less distortionary way of taxing capital. I favour including everything, even family homes (with rollover provisions for family homes). It more fairly captures the income enjoyed by the founders of businesses with low capital requirements that achieve a high sell price because of intangibles such as customer base, brand, intellectual property. TOP’s proposal is light on companies such as TradeMe, Infometrics, Charlie’s, 42 Below, while it would hit hard companies like F&P that need to invest in substantial equipment.
Finally, since capital gains taxes are widely used elsewhere, there’s plenty of other examples to look to and pick what works and eliminate the loopholes from the beginning.
My reading of their tax policy is more as a capital investment policy. The tax is on equity, so is designed to encourage property owners to borrow against their property and to invest in income generating businesses.
A noble aspiration, and a very correct observation of what is wrong with all our wealth tied up in non-productive real estate, and Morgan’s ideas may be a solution to that, but there’s some serious transition issues around how we get there.
Also, on the face of it, a huge structural subsidy (even more of a licence to print money) in favour of the banks.
Encouraging debt can’t be a good thing. I know of a bunch of businesses that went under 2009/2010. Most of them were running on borrowed money. I know a bunch of businesses that survived 2009/2010 with just a bit of belt-tightening. Most of them were debt-free or nearly. The correlation was pretty good.
Let alone encouraging more mortgage debt to avoid paying tax to live in your own home…
Seems to me a better way to encourage investment in more productive sectors is to clean up the financial shenanigans that make non-property investment so unattractive in NZ.
Yeah, I’m not a fan of it for those reasons too. The whole thing looks like a few rather noble ideas with rather poorly thought out execution. But that’s how Morgan operates.
You’re on the button about this problem needing a carrot approach to make productive investment safer than hence more attractive than real estate. It’s the financial markets that need the stick, not the property owners.
“Encouraging debt can’t be a good thing.”
That’s a bit too generic a statement. A lot of new investment is debt funded so any form of encouraging investment is going to encourage debt. The problem occurs when your getting a lot of debt taken on which is chasing capital gains anticipated due to expanding underlying debt levels.
In terms of Morgans policy proposals, I doubt that the indirect measures like tax changes will have much effect. Even a capital gains tax has worked where? If we were serious about stopping the housing bubble in NZ then you need to prevent competition in taking on more debt directly. The LVR ratio is a start but needs to apply property by property (to stop competition between borrowers) and the cap could be on all borrowing, and lower. Also its still tied into the valuations, so make it loan to rental income to serious stop the competition in who can take on the biggest loan at purchase time.
Cleaning up the share market and dodgy practices there would do a lot to improve investment, but it will take a long while to kick in, many people have been scammed in the past and have a long memory.
I too doubt capital gains taxes will do much to slow the housing bubble inflating.
CGT is more an equity argument about those that benefit from a societal environment that allows capital investment to be protected and grow being required to contribute something back to maintaining that society. Instead of parasitically keeping it all in their pocket like they do now in NZ.
I don’t really believe in that fairness arguments. If some people are profiting off of others falling into significant indebitedness, that is unfair and problematic for society even if the government is taking a cut or even a very significant cut. If Capital Gains Taxes actually work then they need to be set at levels where they collect very little revenue because the underlying behavior is being discouraged by them. On the other hand I don’t think I have seen any examples of them working to actually achieve that.
My reasoning around Morgan’s tax policies is that essentially he believes the market is fundamentally pretty rational and so if profit is discouraged by taxation then this behavior will desist. I don’t think the market is anywhere near that rational, there are plenty of analysis saying that essentially many property investors are already losing money with their housing speculation and would get better returns with more productive investments anyway.
“A lot of new investment is debt funded so any form of encouraging investment is going to encourage debt. The problem occurs when your getting a lot of debt taken on which is chasing capital gains anticipated due to expanding underlying debt levels.”
The problem occurs when the interest paid gobbles up profit to the extent that little or no income tax is paid. Banks, however, don’t invest in businesses; they lend to investors, whether proprietors or shareholders, who do the investing. The trouble is that monies borrowed represent a personal benefit to the borrower since he is provided thereby with funds to invest in, and own, a business or property, and of course interest is the cost of that personal benefit, and personal benefits, while normally not tax deductible (this why we have fringe benefit tax), seem to have been deemed deductible in the case of interest.
Getting rid of deductibility of interest for tax purposes would probably mitigate many problems.
Banks do lend to businesses, interest is only deductible for the payer of the interest, so if interest is being deducted before profits are taxed then the business is making the interest payments.
We don’t want investment in productive businesses because they pay more tax to the government (which is pretty much irrelevant). We want that because it avoids the economy being a contest in speculation, which is prone to busts. Getting rid of interest deductibility is unlikely to solve that problem, though it is likely to make borrowing have a higher interest cost which will likely hamper investment in productive business as well as speculation. That kind of measure needs to be carefully targeted at speculative businesses.
“Banks do lend to businesses, interest is only deductible for the payer of the interest, so if interest is being deducted before profits are taxed then the business is making the interest payments.”
Businesses don’t pay interest; the person to whom the monies were lent, ie the proprietor, pays the interest. It doesn’t matter whether the proprietor pays it from his “business” account or from his “personal” account, it is the proprietor who is paying.
The issue is not the effect that non deductibility would have on this or that business. The issue is whether it is fair that someone who puts his own savings into (say) a rental property, and earns a decent profit, pays a respectable amount of tax, while someone who borrows heavily to invest pays very little tax because most of his profit is being eaten up by a personal expense.
> Getting rid of deductibility of interest for tax purposes would probably mitigate many problems.
It would send rents through the roof
A.
too late, they are already sky high.
Oh they can still go higher
of course they can, but will the government be able to continue paying the Accommodation Supplement that would allow Landlords to charge higher rents?
and how long before we have riots in the streets and would that be a good outcome?
Hmm, but maybe that is the intended outcome, destroy a bit of real estate, lock up a few people, insurance pay out, rebuild, charge higher rents.
so how do you like your current society vs the one i just painted?
cause it seems that the ‘burn down the house in which you are living’ is a thing at the moment with certain people on the left and the right.
Steady on, raising rents was mikesh’s idea not mine!!
“Seems to me a capital gains tax, as used in most of the rest of the world, is a much fairer, less distortionary way of taxing capital. I favour including everything, even family homes (with rollover provisions for family homes).”
A capital gain is still capital, but it represents only a small part of the capital that exists.
It is therefore difficult to see how taxing capital gains is “fairer” or “less distortionary”
when other capital is not being taxed.
“Finally, since capital gains taxes are widely used elsewhere, there’s plenty of other examples to look to and pick what works and eliminate the loopholes from the beginning.”
CGTs don’t seem to have “worked” elsewhere. Countries that have them seem to have just as many problems with property as we have here. I suspect the reason most countries persist with them is because they are a relatively easy to collect form of revenue. That they do not have much effect on interest rates probably makes them popular with the banks as well.
CGT doesn’t do much by itself – land tax and stamp duty are much more powerful options.
Great thread of discussion. At Gareth Morgan recent meeting he talked about stamp duty and estate duty that used to be ways of clipping tickets of valuable assets. Seems good idea if not set unreasonably high. Farms shouldn’t have to be sold to pay death duties etc.
It would be fairer to bring down GST to 7andhalf as I envisage, and make up the slack with tax on transferring properties. Any being sold under 5 years ownership, having a good tax on the difference between purchase and sale, only allowing for CPI and reasonable costs. (That way there would be a little correction for the huge difference between CPI and the burst in house prices.)
Further on housing
A piece on the bust of a Toronto housing bubble had me thinking of previous NZ ones.
In 2009
http://www.interest.co.nz/news/44330/opinion-why-golden-oldies-are-wrong-housing-less-affordable-now-1987-and-1975-corrected
and in 2016
http://transportblog.co.nz/2016/07/11/remember-the-last-time-house-prices-crashed-40/
John Key is going to work for this Japanese businessman/golfing enthusiast/philanthropist/priest Handa! Now where have I heard this name before?
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11820452
Handa was made an honorary member of the New Zealand Order of Merit in 2016…
Gee, I wonder who arranged that for him?
This is only connected in that it involves business people playing with their money in NZ to help them to get all of our money of us. Old news bac in 2012 but for lovers of interesting back stories might fill in gaps
Why is urban land expensive in NZ? Because it is just a way to gain Monopoly
money.
https://www.nbr.co.nz/article/tuesday-heartland-moves-over-toxic-nelson-loan-ch-p-127482
The property was acquired by Victoria Properties Consolidated in 2005 for $5.4 million with an optimistic forecast of potential value of $18 million to be gleaned from section sales after rezoning….
About 150 mainly Otago investors have money in the Victoria group, which is managed by Britannia Management, whose directors include National Party director and Canterbury Westland chairman Roger Bridge and financial adviser Craig Myles.
Probably where some of the payout from Hubbard’s South Canterbury Finance debacle went.
trump is a rude man – what possible reason other than that is there for this?
nah nothing stacks up – he is a petulant, pathetic man-child
“”Do you want to have a handshake?” Merkel asked Trump, leaning closer to Trump after the US president failed to respond to the requests.
Trump continued to stare straight ahead and didn’t answer, leaving Merkel high and dry.”
http://www.stuff.co.nz/world/americas/90579146/donald-trump-angela-merkel-hold-first-facetoface-meeting-at-white-house
Whatever he is, he just loooooves sticking it to the marks that voted for him.
http://www.salon.com/2017/03/17/trump-is-cutting-programs-that-help-the-appalachian-voters-who-helped-put-him-in-office/
http://www.motherjones.com/politics/2017/03/donald-trumps-budget-sticks-it-people-who-elected-him
It may be the only way that those people are going to realise that the Republicans are not their friends.
Agreed. Maybe after their Republican Messiah bloodies their collective noses, they’ll feel a little differently. Although, judging by some of the comments Trump’s supporters have made in the past, coherent thought is simply a bridge too far.
Oh, I’m sure that there’ll be a few that will find some way to blame Obama and the Democrats for what Trump does.
The grey matter’s melting.
https://twitter.com/SteveKopack/status/842751054769020928
this was after their meeting and i would suggest that Mutti just did not give him the love he so thinks he deserves.
Also there is that Mutti thing that they orange one has, unless the chick is young, has big boobs and a fine ass he is not interested. All other women, especially ones with guts and smarts remind him to much of his mother. And he can’t bribe his mother into fucking him for a pot of gold, cause shes seen it all before and he aint anything special. 🙂
Nah. How much guts and smarts would it take to go stay with one of three sisters already in the states. Plenty of other Lewis women took off round the same time. Smart move marrying Fred though.
http://www.dailymail.co.uk/news/article-3602299/An-uncomfortable-truth-REAL-story-Trump-s-mother-climbed-penniless-Scottish-immigrant-wife-businessman-revealed.html
it takes a lot of guts to board a ship at seventeen and to move to a new country to work as a domestic, even if you have sisters that already live and work there.
Mother Trump had guts and in the end lived glory, as she did well in the US.
Her middle child however …..
German reporter – Why do keep saying things you know are not true?
They shook hands later.
http://www.zeit.de/politik/ausland/2017-03/angela-merkel-donald-trump-besuch
Christchurch City Council committee keen to introduce city’s own dollar.
The committee is focusing on the Bristol Pound as a potential model.
http://www.stuff.co.nz/business/90493334/christchurch-city-council-committee-keen-to-introduce-citys-own-dollar
Parents win ‘fight’ to get daughter into Salisbury School
Hekia has been attempting to bully Salisbury School into closure for many years now, by denying girls the best facility in the country for their needs, instead preferring they use a ‘wrap around’ service.
Once again we discover another story of the struggle a family has gone through over a number of years to have their daughter attend Salisbury School.
Finally she has been excepted, Salisbury will change and improve her life and that of her family tremendously.
Salisbury School is NZs most valuable educational facility for girls with complex needs, a wrap around service is not enough for some girls, Salisbury saves lives.
I wish this family all the very best, your girl is going to love Salisbury, so happy you finally got there.
A change of government will help to keep one of the most valuable schools in the country open.
Some wrap around services must be making a fortune, Salisbury school is not about making money, it’s about improving lives. Would be interesting to know who is making money from the wrap around services, someone is.
Have you any idea what ‘wrap around services’ are or are they just double speak for actually doing nothing?
I’m not surprised they’ve been trying to shut down what seems to me to be a great school – they’ve been making it harder and harder for children with additional needs to access suitable education.
For that matter, they’ve been busy screwing the whole education system from top to bottom to suit their own ideological ends – they’ve got to go!!!
I suspect that it’s doublespeak for the average, run of the mill school that suits most children but is detrimental to those that are outside the norm.
This explains wraparound services:
http://www.education.govt.nz/school/student-support/special-education/intensive-wraparound-service-iws/
Salisbury sounds very good
A.
Thanks for that – sounds like a few hours with a psychologist and on yer bike! Charming!
A cynical piecemeal approach that has one advantage from the National Party’s perspective: it’s easier to defund.
Yesah Salisbury School is an incredible place which saves lives.
Sometimes residential care is the best option rather than mainstream school. And the way this school prepares the girls for life is outstanding. Like when they reach a certain age they are moved to little villas to live with each other, on site with staff support, to give them life skills in a supportive controlled environment. Awesome.
They get to experience a strong sense of community, not only in the school, but also in Richmond itself and sometimes that will be the first time some girls have ever felt a sense of community or inclusion.
Hekia has been hell bent on closing Salisbury down, it’s more like a competition to her, the urge to win. People shouldn’t play games like that with the lives of others.
It’s so hard for me to understand why push the wrap around services which haven’t worked for some families, rather than supporting a facility that has been up and running and making a huge difference for decades. So I begin to wonder things like… do her friends have a wrap around service business?
Should some parents not be told about the school from the beginning as an option?
Anyways, Salisbury is a very very good school, huge respect for all the staff whom have made it so amazing over the many years it has been operating, and looking forward to seeing the roll increase in the future, rather than more road blocks, and more suffering from the outgoing government.
> So I begin to wonder things like… do her friends have a wrap around service business?
I don’t think you need to invoke corruption here – ideological blinders and a fairly hefty dose of incompetence is enough
A.
PS _Some_ people do well on wrap around, I understand
Connections?
Rangiora High School has Trust land. The Ministry wants to grab the control off the BOT so they can sell the land. So destroy Principal and BOT.
Salisbury has valuable land. The Ministry wants to grab the control off the BOT so they can sell the land. So destroy Principal and BOT and strangle the entrance for the girls.
Good on Parata! Yay!
Edit:Meant for Cinny
Yes land was a question raised, it’s prime real estate.
The TDC mayor assures us all that it won’t be a land grab.
The land belongs to Rangitane Iwi
Kempthorne wants the school to remain open, and is vocally strong about his support, so many MP’s are as well, Tracey Martin, Catherine Delahunty, Chris Hipkins, Damien O’Connor and others, am so thankful to them for their ongoing support
How ridiculously childish is this POTUS ?
http://www.nzherald.co.nz/world/news/video.cfm?c_id=1503076&gal_cid=1503076&gallery_id=173026
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
Beware of moving from Auckland Council (Corporate) Controlled Organisations (CCOs) to Public-Private Partnerships (PPPs).
This upcoming ‘review’ needs to, in my view, make a top priority of returning all public services provided by Auckland Council and CCOs back to ‘in house’ service provision under the genuine, not-for-profit public service model.
Which was never broken before we had two doses of Neo-liberal ‘Rogernomic$’ reforms forced upon the public majority of Aucklanders.
In my view, we also need a huge clean out of ex-private sector businesspeople from ‘public servant’ roles.
How do people from the private sector ‘transmogrify’ into genuine public servants – serving the public and the public interest?
In my view – they don’t.
They’re from Planet ‘Private Profit’ and come from a completely different background and culture
– make money for shareholders – look after yourself and your mates?
Time for some BIG changes!
OPEN THE BOOKS!
CUT OUT THE CONSULTANTS ,
CONTRACTORS and CCOs!
BRING COUNCIL PUBLIC SERVICES BACK ‘IN HOUSE’ UNDER THE ‘NOT-FOR-PROFIT’ PUBLIC SERVICE MODEL!
Penny Bright
‘Anti-privatisation / anti-corruption campaigner’
That’s would be the desired end result but the review should do an unbiased cost/benefit review. If they do that then moving all back in house should be a no-brainer.
The PPP model simply costs too much for limited returns that often makes things worse.
http://www.stuff.co.nz/southland-times/news/90495259/Forest-Bird-holding-Environment-Southland-to-ransom-ES-chair
“If Forest & Bird gets its way, marine farming could never be considered…”
While “Forest & Bird Otago/Southland regional manager Sue Maturin said it did not consider marine farming to be appropriate for internationally significant and special places such as Fiordland and the wild pristine waters of Stewart Island, or the marine mammal sanctuaries for Hector’s dolphins in Curio Bay and Te Wae Wae”.
They’re talking about two bays by the sounds of things. Sounds reasonable.
“He was concerned the Wellington-based organisation was “not prepared to compromise” and said court action would cost a lot of money for Southland ratepayers.”
I’m sure all the Southland F and B members and volunteers who work in the area will love that bit.
Weka Interested to know more about 2 Bays… interested in hearing more.. Link Please…
Seems a default setting/response whenever these sorts of questions are raised…
“court action would cost a lot of money for Southland ratepayers.” (or any her Ratepayers… Why is is it that only Ratepayers count when these are National issues! Just like Dairy Intensification!
Northland/Westland/Canterbury/Horowhenua… wherever… Why is it that only Ratepayers, (As I am), only allowed to comment on/have impute into “district” issues”
Surely Marine Farming in Fiordland or Stewart Island, (as part of NZ), or the planet! If it’s unsustainable/ and/or inappropriate,( In some circumstance) (Just like Cows in the McKenzie Country, or Canterbury…) Why is it that these issues can only be allowed/commented on by _”Rate Payers”..
When there is so much apathy locally surely there’s a need for other parties to put their 10 cents worth in. For the Good of All!
Or can the few in Jackson’s Bay, ( or the Westland Council) determine whats Best…
http://www.stuff.co.nz/business/88099749/From-national-park-to-overseas-Plan-to-export-billions-of-litres-of-West-Coast-water
I only know about Curio and Te Waewae Bays issues from the article (although I have been to both places too). I trust F and B’s judgement. Hopefully Robert Guyton will comment. He would also know if there is a place for non-rate payers to have input.
I also think getting it written into the Regional Policy Statement is critical, because so much time, energy, effort and resource is being wasted having to refight these battles over and over and over.
Locals Rule!
http://www.radionz.co.nz/news/national/326886/few-local-objections-to-shipping-water-overseas-mayor
My concern is that too many people are saying we need to put a price on water. I think we should have a moratorium on all new exports until we sort this out.
If we’re going to keep with a market system then we most definitely need to put a price on it.
Me, I’d like to put science on it and determine just how much water we can use before it becomes unsustainable.
I’m also pretty sure that we’re well into the unsustainable usage now and it’s just getting worse as the farms suck up more water and the water bottlers export it.
“If we’re going to keep with a market system then we most definitely need to put a price on it”
Quite. Which is why I think focussing on the price rather than a moratorium is buying into neoliberal framing. Have the conversation first about water being life, then talk about the limits, then see what if any price is needed. But then I think bottling water for profit is up there in terms of evil alongside Monsanto or chopping down rainforest to make burgers.
“Me, I’d like to put science on it and determine just how much water we can use before it becomes unsustainable.
I’m also pretty sure that we’re well into the unsustainable usage now and it’s just getting worse as the farms suck up more water and the water bottlers export it.”
I also believe we are well past anything remotely sustainable. I’m not sure we could even determine what sustainable is under the current system. Industrial export dairying would have to stop for a start, and no-one even wants to talk about that apart from those of us who have nothing to lose. And Rachel Steward 🙂
It is very little water that the bottlers are exporting. By all means worry about the farms but I really wouldn’t lose sleep over the bottling
Look at the bigger picture. Bottled water is a pollutant because of plastic’s accumulation in the environment (e.g. the Pacific gyre), and because plastic is an endocrine disruptor.
Exporting water has a ridiculous carbon cost. It actively supports the despoilment of local aquifers and watersheds in the places it is being sold. There is a reason people need to ship water from here. It’s daft beyond all reasoning to be moving water from one side of the planet to another using fossil fuels, but even if that were sustainable, it doesn’t get around why people need the water in the first place. Making money off other people’s destruction of the environment is not only amoral, it’s going to back lash against us. You think people with bigger sticks won’t come and take water from us if we let the civilisation get to the point of mass water wars?
“It is very little water that the bottlers are exporting.”
That argument I am not convince about. It’s the overall take from a catchment that counts, and if an aquifer is depleting (e.g. farming), then taking out water for bottling is still a further depletion. We also don’t know what the demand will be going forward except that it’s most likely to increase and may increase exponentially. We should be setting limits now, not doing what we have done with dairy and seeing how far we can push the plunder. From what I understand replenishing an aquifer is not a quick or easy thing, and by the time we get to that point we will be well into direct climate change issues.
We’re already at the point of fucking with the groundwater beyond our ken,
http://www.nzherald.co.nz/the-country/news/article.cfm?c_id=16&objectid=11705149
Well, I sympathise with your desire for better water management
But, like all RWNJs, don’t like the idea that there are real physical limits that we need to live within.
I dont have a problem with that idea
That is not the way that you come across with your ‘sympathy’ nor your excusing of water bottlers.
Everyone agrees that the world has real physical limits. The interesting bit starts when you talk about what those limits are, how close we are to exceeding them, and what should be done about it.
My point is that water bottling (as opposed to dairy) takes you only a very little closer to reaching a hard limit.
I understand Weka’s rejoinder however.
A.
That’s not actually true. Many of the conservative bent don’t think that the world has limits. They’re easy to spot as they insist that we can just keep using more and more of the worlds limited resources with consequences.
Bottling water is fine because it uses so little. Owning and running a car is fine because it uses so little.
They don’t seem to understand the effect of multiplication and that it’s not just a single bottling plant and just one car being but many. That the demands upon those scarce resources isn’t just one thing but many and they all have their cost that reduces amount available.
You cannot have your cake and eat it too.
But very few people understand that. Even, IMO, most economists don’t get it despite it being at the root of their profession.
But what is the limit? Without knowing that how can you say that water bottling doesn’t take us over it?
Every little bit counts.
Watercare aren’t asking for one person to save a lot, they’re asking everyone to save a little which will add up to a lot.
feed your head – great vocal – ‘Grace Slick’s isolated vocals tracks for “White Rabbit.’
https://youtu.be/eChgEiovCww
why? – just a point – does ‘why’ need a question mark?
anyway – we must look at things from different angles – we can do it with a song and with a few other things as well…
Arrg, not the ear worm!! (great track though).