I thought of this thread when I say this
Attachment 13116
From this article
https://www.interest.co.nz/news/1127...xes-or-cutting
Printable View
I thought of this thread when I say this
Attachment 13116
From this article
https://www.interest.co.nz/news/1127...xes-or-cutting
I support a flat tax too. A flat tax on all gains, whether income or capital gains, with an annual tax free allowance.
I also think that NZ should have a pension scheme, which is tax deductible (up to a certain amount of contribution each year) and does not incur annual tax until distributions are made from it after retirement.
With respect to the state. It should enforce property rights, but it should also ensure that the property which has been afforded protection by the state (or society)be accumulated fairly or in a manner acceptable to society or“the state”. So product and environmental regulation is needed, along with marketing and employment standards.
It is interesting how in 2018 wealth continues to increase until the age of about 75. Whereas in 2001 it started to decrease from the age of about 58 onwards.
So there will be more wealthier deceased estates or family trusts.
I guess back in the day earning income was relatively more important so that when someone retired, and had less income, their wealth would drop too. Whereas today wealth creation (and wealth maintenance in retirement) is much more reliant on the capital gains from exisiting assets (which to a great extent means residential property ownership in NZ).
No, every amount over the threshold would be taxed at a flat rate.
Especially important if you have no tax free threshold with respect to income/gains, we would need to look at GST as well. A continued flat tax regime on outgoings would need to be extended. So GST should be extended to asset purchases such as real estate and share purchases ( a stamp duty). To determine if you have an assessable capital gain, you could deduct the flat rate Stamp duty on the outlay in determining any gain.
Yes, but that produces a progressive tax. Compare someone on 200k a year with the first 10k exempt with someone on 15k a year with the first 10k exempt - you work it out, but you will find they pay vastly different percentages. IOW progressive - not flat, but you knew that. You just forgot.
I think a tax free threshold is possibly the best solution for the problems that any tax proposal has. I'm not necessarily against it. I am simply against using the misnomer 'flat-tax' when it is no-such-thing.