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@Snowy said in NZ Politics:
@muddyriver People (like me) will just move their assets. Land /property tax has been tried before. It doesn't work. Rates are bad enough.
Yes, property prices will drop resulting in lower net worth to tax.
Yes, lower rents and lower spending overall from land owners.
So a general recession in the economy is what they are after?It's a race to the bottom and yay, everybody can be poor.
It's about punishing "rich" people who have only known success because of who they have oppressed.
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Although TBF, our tax brackets probably do need amending more than anything.
I mean someone earning $70k is in the top bracket (33%) and then the next one down is $48k - $69k (30%)
NZ Average salary is supposedly just under $80k, yet those earners are all in the top bracket.
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@Kirwan said in NZ Politics:
@Snowy said in NZ Politics:
@muddyriver People (like me) will just move their assets. Land /property tax has been tried before. It doesn't work. Rates are bad enough.
Yes, property prices will drop resulting in lower net worth to tax.
Yes, lower rents and lower spending overall from land owners.
So a general recession in the economy is what they are after?It's a race to the bottom and yay, everybody can be poor.
It's about punishing "rich" people who have only known success because of who they have oppressed.
Not that I am rich but, yeah I'm not doing very well with the oppression thing. I need to try harder. The 40+ years of work, and bringing the money back to NZ, and employing people, and I'm about to go on another rant...
Tax my assets and at least one of my staff would have been out of work during this mess. I paid for them, not the government, they still could pay their rent, feed their families, etc, and I don't trust the powers that be to do so. Take that ability to manage away from SME is a horror show of unemployment and poverty.
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@dogmeat said in NZ Politics:
@Snowy Coincidentally the Chief Economist for Akl Council published his thought on this very subject today
@Snowy 's head to explode in
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1Absolutely not. I agreed with a lot of that. The way rates are "valued" is one of my gripes.
Most of what I said earlier was on an additional land / wealth tax from central government. We already have that from local government.
LV versing CV makes more sense and does encourage sensible development. At the moment if I build on a property the CV goes up and the rates do too. The land value won't have changed much, it's got a view, etc. The incentive to improve a property with planting, building isn't there if you have to pay increased rates. The whole services and roading thing is relevant too.
Thanks for putting that up. A good read and appears to be really practical.
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@dogmeat said in NZ Politics:
@Snowy Glad you liked it. I'm in favour as well. David Norman (Chief Economist) puts out a monthly newsletter which is usually thought provoking. I've met him and he has a knack of communicating detail in a simple way.
I think that you just called me simple...
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@Snowy how can you dodge a land tax though?
Assuming you mean the wealth tax?
I think the lower spending from land owners would be offset by more spending from everyone else through lower net tax.
Agree that due to current asset prices it is difficult
Particularly for those who havent ridden the huge capital gains on the way up, ie new buyers.
For me a lower income tax plus land tax is the easiest to implement hardest to dodge. But also incentivises productive investment.
I might have a look at nzs old land taxes as tbh I bavent looked at any case study just the theory makes sense. -
@Paekakboyz said in NZ Politics:
@Smudge so they've given the role to a builder? could have at least chosen one that starts the day with a nutritious pie!!
He needs to smash back a V to complete the look.
NZ Politics