yep but still predicting the future these value investors
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National win 'could be good for financial markets'
She said, looking at the New Zealand market’s performance since 1957, on average there had been positive capital returns of 1.5% in the three months after a National-led government won an election.
When Labour won, capital returns in the following three months averaged -3.3%.
“If a National-Act Government wins, if they’re able to implement their changes – they are business-friendly parties. The expectation would be that markets would benefit and be happy
If we get another Labour-Green Government, I would probably think things go from bad to worse.
https://www.stuff.co.nz/business/mon...ancial-markets
This time around they are keeping Labour’s higher income tax rate and cutting tax deductibility of commercial depreciation. So not so business friendly if you earn income from your business. More friendly to residential real estate investors whose returns are substantially from capital gains though via the bright line period reduction. They want to make residential housing even more expensive and suck up even more of bank lending?
I don’t know if any party has plans to increase the top 28% pie tax.
The PIE threshold's haven't changed so a full time worker on minimum wage is close to being taxed at 28%.
Though I don't expect National to do anything about it they have a mixed record of encouraging domestic savings (simply import everything we need from overseas like our labour force). Everything else is too hard.
The above comment on PIE tax thresholds is not true. You can elect to have your PIE tax threshold for PIE income at a lower rate that 28%, if you are in a lower income bracket. Furthermore if you are charged PIE tax at 28% yet your overall tax rate is much lower, you can now recover any difference in excess tax deducted by filling out an IR3 tax return.
SNOOPY
I think it is inevitable that the PIE threshold, other than for companies, will be raised to at least 30% and plausibly to 33% given that those for whom the marginal rate is less have merely to submit a Tax Return at year end to recover any overpayment.
Assuming the Trust rate is raised to 39% (where income is undistributed) from 1 April 2023 rather than the former 33% it is untenable that the discrepancy with the PIE rate is widened to that extent, and we all know revenue must be raised from somewhere and this is clearly the least unfair method of doing so. Some adjustment to the tax brackets would help offset the impact. But if wealth/capital gains taxes are off the table then this change is the principal way to remove some of the perceived inequities.
I think the trust tax rate is due to increase to 39% from 1/4/2024.
There is quite a discrepancy now between the top pie rate of 28% and the top IT rate of 39%. However, If the top PIR is increased then why would high income earners bother with something like KiwiSaver, when stamp duty free and tax free gains are still available from investing in leveraged real estate.
Not introducing a CGT while increasing IT tax rates is the sure fire way of entrenching inequity in favour of (mostly) older and wealthier people.
a lot of equity pie funds already pay a capital gains tax , FIF
national have left open the door in there comments for a discussion on CGT by not ruling out any new tax if they become govt
Good news
The S&P 500 could triple to 14,000 by 2034 as secular bull market cycle takes hold, per RBC: