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Open mike 26/08/2010

Written By: - Date published: 6:00 am, August 26th, 2010 - 17 comments
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17 comments on “Open mike 26/08/2010 ”

  1. Jenny 1

    .
    When even a conservative American website, for investors and speculators, posts a powerful argument for Tax Justice, then you know it is an idea whose time has come.

    Money Morning .com

    Support the movement for Tax Justice

    1. Remove GST from food; and
    2. Tax financial speculation.

    Click here to download the petition.

    The petition’s demands cut to the heart of neoliberalism in the wake of the global financial crisis. The demands are also proving popular. Since the Tax Justice campaign was launched on 22 May over 7,000 signatures have been collected (in the middle of winter). 1,900+ people like the campaign’s Facebook page. To join go to No GST on Food

    capcha – “others”

    • Bored 1.1

      Jenny, take it a step further, banish GST altogether.

      Why?
      * Because it inflicts the tax at the point of transaction, something none of us can avoid.
      * It creates a vast amount of work administering for no gain which is by definition inflationary.
      * It unfairly punishes those who are on lower incomes as a proportion of thie income to expenditure ratio.

      We would be a whole lot better off taxing the wealthier at a far higher rate, making companies pay tax on their profit alone and closing the holes in avoidance.

      • Lanthanide 1.1.1

        It also discourages conspicuous consumption, which is a good thing.

        A VAT (value added tax) like the UK, where tax is attached to things considered to be ‘luxuries’ and not attached (or at a lower rate) to other items is better than ditching GST all together, IMO.

      • KJT 1.1.2

        The rich do not pay tax because they can use all sorts of dodges. Tax is generally paid by higher earning wage earners. GST does catch the tax avoiders in the tax net to some extent. Broadening the tax base.

        Some things need to happen for a fairer tax system.

        Capital gains tax.
        Transaction taxes.
        Currency speculation taxes. Needs other countries to implement at the same time to work.
        45% on really high incomes. Over $150k.
        GST.
        Get rid of trusts and other dodges.

        Except for taxes on high wage earners are all means of broadening the tax base.

        For income taxes I would like to see Gareth Morgans idea of a universal individual minimum income administered through IRD replacing benefits. The main advantage is reducing administration costs, but it also removes the need to go and beg to WINZ for a benefit.

        • Lanthanide 1.1.2.1

          No, the idea with the universal minimum income is that it was the minimum. Additional benefits, such as unemployment, DPB or invalids benefits could be added on top of this minimum, which would still require you “to go and beg WINZ” for this add-on.

          It does make administration of benefits somewhat easier in that many people who receive small benefits such as living allowance would now get it rolled into the UB, but it also makes it harder in that WINZ need to keep track of bank accounts for all citizens (presumably there’d be some special government life-time bank account set up for these payments).

          The real benefit is that it allows you to have a flat tax rate applied to all forms of income, and hence get rid of high marginal tax rates caused by benefit abatement, which truely is a big disincentive to go out and work (why bother working 40hr week on minimum wage if you only get to keep 15% of what you earn and come out only marginally ahead of staying home on the unemployment benefit?).

          • Draco T Bastard 1.1.2.1.1

            With Universal Income the UB would be eliminated. The idea is that, no matter what happens, you have an income that you can live on. DPB and invalids would probably be a top up on that as they require greater resources (Although, for the DPB, I’m in favour of the child getting the income as well – just paid to the parent until they turn 16).

            but it also makes it harder in that WINZ need to keep track of bank accounts for all citizens

            That’s hard? Have you told the banks that? Or Inland Revenue who keeps track of everyone’s IRD number?

            • KJT 1.1.2.1.1.1

              My idea of a universal minimum income is that it is just that and applies to children as well, though maybe at a lesser rate?

        • Salsy 1.1.2.2

          The rich do not pay tax because they can use all sorts of dodges.

          Pike River Coal reports $39m loss
          The company also had an income tax benefit of $13m because of the new company tax rate that comes into effect on July 1, 2011 of 28 per cent.

  2. BLiP 2

    How to profit from child poverty. The entrepreneur in this endeavour, Conferenz, says on its website:

    Owned by Steve Scott, Conferenz and Bright*Star are proudly NZ-owned and operated. We are also proud to play a significant part in the NZ community through our charitable, environmental and sustainable initiatives.

  3. prism 3

    USA financial stats show that the economy is faltering. What is being measured?
    The housing market. Our Dr Brash the abstracted economist, gave us the message that people shouldn’t aim for housing ownership. One had the impression that house ownership was unimportant for the individual and a minor aspect of the national economy. Apparently not. What was this man thinking or was he reciting a mantra economists chant?

    (Of course most of us actually know that housing costs regularly go up in higher steps than wage rises and the longer taken to step on to the escalator the further behind the individual gets.)

    • Bored 3.1

      He has been reading tea leafs again…theres too few chickens entrails left due to the downturn. Funny how we Cassandras get it right, but the economists are always wrong. Proves that people prefer what is not true to what is true (if it sounds better).

  4. Rex Widerstrom 4

    Calling lprent…

    Upon visting the Standard today my browser (IE 8) informs me that it has “blocked this site from downloading files to your computer”.

    Never happened before, haven’t changed my security settings, haven’t updated anything since my last visit.

    Not accusing you of anything… just noting that something odd appears to be happening (for me at least) which, if replicated, might frighten off other visitors… and we can’t have that 😀

    • lprent 4.1

      Now that is really odd. I’ll have a look at the sent code. But I can’t test IE until I unpack the laptop and boot into the detestable OS

  5. Rex Widerstrom 5

    On a happier note, Micael Lhaws loses his mind.

    Pushing, shoving, lapel grabbing, Facebook hacking, police calling, trespass notices…

    What’s occasioned this high drama? A matter of national political importance? No…

    …the controversy this month in which 15-year- old Olivia O’Neil was stripped of her beauty pageant crown for dying her hair black

    Earlier this morning, Mr Laws said he had never some across ”such a despicable, dirty and probably illegal smear campaign” in his 25 years as a politician.

    Really? Well in that case there’s this book I recommend he read. It’s called “The Demon Profession”…

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