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@Mokey said in So we are about to get taxed up a storm!:
Our tax brackets are fucked up. Anything under 10k shouldn't be taxed at all, but more than that, having 48k taxed at 30% is ridiculous. Once upon a time that was a half decent salary, nowadays with the cost of living, it's barely average.
It presents no incentive to work harder for minimal gain
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@canefan Yeah, there is not much incentive to move above that 48k mark if the next bracket is 30% tax. Net gain is fuck all. That whole bracket is crap. 48k-70k is a goodish pay packet IF you live outside a city or you already own your own home and aren't subject to Wellington or Auckland or Tauranga rents/house prices.
A salary circa 40-45k is basically minimum wage plus a little more. No fucking way should anything in the 40s get taxed at 30%.
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@Mokey ha yep, on $47,000, boss says we can give you a 3% pay rise this year...
Er, no thanks...
After I lost my job 5 years back, the first full time job I did when I came back was $50,000 and she was a struggle, especially as Mrs TR works school hours a shade over min-wage, and she works those hours so we dont have to pay for after-school care.
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@Toddy said in So we are about to get taxed up a storm!:
Why wouldn't you take a pay rise to go to the next tax bracket? It only means every $ after the bracket is taxed at that amount, not the full pay!
You have a point if WfF is in the mix.
Worked with a clown that wouldn’t finish his apprenticeship because he didn’t want his wff cut.
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@Toddy sadly that makes a big difference for household incomes around that level.
When I got a higher paying job I cancelled it straight away and then they checked at end of the tax year if I was entitled to any...nope.
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@taniwharugby yeah, I always advised clients to take the end of year top up if they were entitled to WfF (if they could afford to). Saw many a tear from people who had forgotten to update the IRD regarding their pay and then having to pay it back.
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@Toddy said in So we are about to get taxed up a storm!:
Why wouldn't you take a pay rise to go to the next tax bracket? It only means every $ after the bracket is taxed at that amount, not the full pay!
Lol my lil sister got a pay rise a few years back and pushed her in to the next bracket and she was upset as she had to pay more tax
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Cullen was one of our better Finance Ministers. Fiscally prudent. Really wasn't much of a change between him and English in real terms. Successfully reined in the loonies spending until the last year lolly scramble.
@Mokey I have no problem at all with our tax rates - as you say it's the brackets that need addressing.
I also hate the concept of WFF although its here to stay now that all parties have endorsed it.
We are going to take your money, waste some of it administering the process; and then if you are deserving, we will give you some of it back. Distorts everything including things like "Living Wage"
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I have heard our tax system is pretty good (brackets aside) when put against most other countries, is this correct?
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@dogmeat said in So we are about to get taxed up a storm!:
Cullen was one of our better Finance Ministers. Fiscally prudent. Really wasn't much of a change between him and English in real terms. Successfully reined in the loonies spending until the last year lolly scramble.
@Mokey I have no problem at all with our tax rates - as you say it's the brackets that need addressing.
I also hate the concept of WFF although its here to stay now that all parties have endorsed it.
We are going to take your money, waste some of it administering the process; and then if you are deserving, we will give you some of it back. Distorts everything including things like "Living Wage"
Cullen loved to tax apart from that I agree he wasn’t so bad as finance minister apart from the train set that continues to cost us a fortune and idiocy like letting the taxpayer pay for dole for artists.
But as a man he comes across as a fluffybunny . I mentioned his maiden speech and his “rich prick “ jibe to Key shows he hasn’t moved on much.
There’s also the way he knifed Goff in the back when Clark was polling in Bridges territory. A lot of politicians are self serving sociopaths so he’s not alone there I guess. -
So apparently Colmar Brunton poll last night had 46% in favour of CGT 41% against
Having done a bit more reading it does seem overly cumbersome with plenty of loopholes (for me anyway) Glad I've kept my investments very liquid
I'm wondering if this is actually a good result for Labour - allows them plenty of room to water down things so they become more palatable - say cay CGT at 25% - do something for farmers - althoughg they are CGT exempt if farm stays in family
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@taniwharugby said in So we are about to get taxed up a storm!:
I have heard our tax system is pretty good (brackets aside) when put against most other countries, is this correct?
Personally I think it is, at present anyway. Pretty straight forward and relativey low cost to administer. From a personal tax perspective, although out top bracket starts at a pretty low level, the average tax rates are still low overall.
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@dogmeat said in So we are about to get taxed up a storm!:
So apparently Colmar Brunton poll last night had 46% in favour of CGT 41% against
Having done a bit more reading it does seem overly cumbersome with plenty of loopholes (for me anyway) Glad I've kept my investments very liquid
I'm wondering if this is actually a good result for Labour - allows them plenty of room to water down things so they become more palatable - say cay CGT at 25% - do something for farmers - althoughg they are CGT exempt if farm stays in family
That was not the question they asked. They asked if you were in favour of a CGT if you got income tax relief. Which is vague question at best. And still only just got ahead.
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The otherissue for thepolitical side is that nobody will change thier vote in favour. But plenty will change parties against. CGT doesnt win votes, only loses.
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@Baron-Silas-Greenback Thanks I never saw the news and the reports I've seen didn't elaborate on the raw data.
Interesting - fudged question for sure with predictable responses from the various industry sectors.
All in the hands of the politico's now. Time for the BSC (Blessed Saint Cindy) to see Winnie's true colours
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@dogmeat said in So we are about to get taxed up a storm!:
So apparently Colmar Brunton poll last night had 46% in favour of CGT 41% against
Having done a bit more reading it does seem overly cumbersome with plenty of loopholes (for me anyway) Glad I've kept my investments very liquid
I'm wondering if this is actually a good result for Labour - allows them plenty of room to water down things so they become more palatable - say cay CGT at 25% - do something for farmers - althoughg they are CGT exempt if farm stays in family
@dogmeat said in So we are about to get taxed up a storm!:
So apparently Colmar Brunton poll last night had 46% in favour of CGT 41% against
Having done a bit more reading it does seem overly cumbersome with plenty of loopholes (for me anyway) Glad I've kept my investments very liquid
I'm wondering if this is actually a good result for Labour - allows them plenty of room to water down things so they become more palatable - say cay CGT at 25% - do something for farmers - althoughg they are CGT exempt if farm stays in family
Finding out this lunatic activist works for Colmar Brunton has changed my perspective on their ability to produce accurate results.
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My basic, probably oversimplified theory, is that people go into business to make money by any legal means, and consequently any money made by people in business should be taxed in the same way. To me, that includes the any gain in value between purchase and sale of business assets, intentional or not, and most rental properties fall squarely into that category.
That's also why the family home should normally be exempt, because it normally isn't a business asset.
Not incorporating inflation makes sense as we don't currently incorporate inflation into GST, income tax brackets or any other tax, so would be consistent with that.
If I was selling it, that's how I would do it - taxing business income equally and in a consistent manner with other taxes.
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@Godder said in So we are about to get taxed up a storm!:
My basic, probably oversimplified theory, is that people go into business to make money by any legal means, and consequently any money made by people in business should be taxed in the same way. To me, that includes the any gain in value between purchase and sale of business assets, intentional or not, and most rental properties fall squarely into that category.
That's also why the family home should normally be exempt, because it normally isn't a business asset.
**Not incorporating inflation makes sense as we don't currently incorporate inflation into GST, income tax brackets or any other tax, so would be consistent with that.
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If I was selling it, that's how I would do it - taxing business income equally and in a consistent manner with other taxes.We should be incorporating inflation into income tax brackets. The proposal makes you get your property valued , if you maintain but don't improve it your property will increase in value regardless then IRD bend you over without lube and take 33% of what you earn from the sale. Not exactly a vote winner.
It looks like lifestyle blocks over 4500 sq m aren't exempt either , according to David Farrer if you take in a flatmate to help with the mortgage you lose your exemption too. Not sure how true that is but if it is true I hope labour campaign on a cgt.
So we are about to get taxed up a storm!