Thats because you arent txing people at their marginal rate and you are exempting peoples main asset - the family home.
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EZ, here is some more business news from this week so far.
Latest Roy Morgan poll shows National Party climbing to 47%% support; Kim Dotcom likely to struggle...
http://www.interest.co.nz/news/68369/latest-roy-morgan-poll-shows-national-party-climbing-47-support-kim-dotcom-likely-struggl
No guarantee of low prices from Labour, Greens power policy. Power prices could be expected to rise if the Labour and Green parties’ electricity policy is adopted using the high historic cost of building some of the country’s largest hydro dams, a research paper prepared for Business New Zealand claims.
http://www.scoop.co.nz/stories/BU1402/S00245/no-guarantee-of-low-prices-from-labour-greens-power-policy.htm
ANZ economists caution against complacency as the NZ economy strengthens. ANZ economists are warning against what they term the 'croc' effect, which they say could undermine the promising economic recovery.In their weekly "Market Focus" the economists said that in the wake of further encouraging economic statistics released last week they were left with little doubt about prospects for the New Zealand economy."We’re into an expansion with real legs
http://www.interest.co.nz/news/68400/anz-economists-caution-against-complacency-nz-economy-strengthens
Strong retail spend continues into 2014. New Zealanders strong Christmas retail spending on credit and debit cards has continued into January according to Paymark figures.Paymark, which processes around 75 per cent of all electronic transactions in New Zealand, said that the total value of January spending through its network was up 7.9 per cent from 12 months ago.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11199387
Is Australia’s milk war becoming the NZ Product War? Federated Farmers of New Zealand believes Australian consumers will ultimately say it’s not fair dinkum to remove New Zealand products from the shelves of Coles and Woolworths supermarkets in Australia.“
http://business.scoop.co.nz/2014/02/10/is-australias-milk-war-becoming-the-nz-product-war/
Good news start to the week for our economy again. National is on the rise and the Green Labour party is slipping. I'm happy.
Interesting article from the ANZ economists with caution against complacency as the NZ economy strengthens, but a good point. The good times are here as stated by the ANZ, but we need to keep our “rock-star” economy booming and as it does more of our last Labour Govt. debt can be payed off and then maybe productivity and income levels will finally start to rise. Of coarse we can always take that backward step and vote a far Left Labour/Greens Govt. in and just give everyone a wage increase and tax cut straight off, nosediving our economy for another decade or so.
More good news just in:
Westpac raises NZ growth forecasts
Westpac has revised up its New Zealand growth forecast for 2014 to 4.2 per cent from its previous forecast of 3.8 per cent, based on the country's high terms of trade performance. More here
Oh, and this just in too: Cunliffe's chief of staff Wendy Brandon resigns
Click me for the link.
And I have always encouraged people I met who had a bit of get-up-and-go, to start a business sometime. Anything.
Partly because of the advantages, including tax issues, but also because they'll generally be more productive, and who knows where it will lead. They might even be (shock horror), employers of other people.
Interest is an acceptable expense if you're running a business, but it's an out-of-pocket semi-rort if you're paying it with private funds. Even when inflation is high, the true cost of owning your own home, the interest, free labour and repairs, updating and renovating , use of money costs, mean that it's unlikely you'll do better than have a compulsory saving period. So there is a good reason for excluding the average family home from a CGT, because most of us are not smart enough or dedicated enough to make a true capital gain on the home we live in.
Property investors, who chose property they wouldn't live or trade in themselves generally, might do a lot better, and some work the system for all it's worth. In this case a CGT at a reasonable rate, levied soon after the sale date, is appropriate.
Labour has tried to get transparency on the finalised TPP agreement text, before signing takes place. No luck as yet.
http://www.stuff.co.nz/business/indu...y-push-blocked
EZ .....hope your man keeps pushing for more transparency around this trans pacific trade agreement
But it is so so secret it going to hurt all nzer's but it make the rich even richer
http://www.informationclearinghouse....ticle37600.htm
That's BS. It has never worked like that and DC is either showing huge naivety or is just playing games with the general populations naivety.
It gets negotiated behind closed doors until signed. If you dont comply with this you get kicked out and no one will trust you going forward (DC probably doens't understand this as no one trusts him now). However, opposition will be fully briefed.
Once signed, then it becomes public but it doesn't take effect till it is ratified.
Shane Jones in the news today with a massive scoop, although I think people in the retail food business will know this already. Back in 2010, the culture differences between Foodstuffs (NZ New World, Pak N Save, 4 Square etc) and Progressive (owned by Australia's Woolworths giant, owning NZ's Countdown supermarkets) was being noted. (Not always favourably in Foodstuff's case)
Quote:
In August 2006, not long after Woolworths bought Progressive, negotiations broke down between the company and the National Distribution Union over the union's demands for a national collective agreement. More than 500 staff were locked out and large gaps appeared on its shelves. The dispute dragged on for a month and became big national news.
Some claim the company is still suffering from the market share it lost at that time.
The latest is that it appears Progressive are asking for backdated cheques from suppliers to cover low operational profits, not in writing, but at special face-to-face meetings. The threat is that their facings will be taken away if they don't comply. It could be that these are conditions placed on big suppliers at the time they sign up with Progressive. Something similar happens in other trade areas, where stock is bought on consignment, or after the sales are made to end users, the actual supplier of the goods is asked to send a cheque to the retailer for a top-up payment based on a percentage of the sales made, which effectively increases the retailer's margin. But this is all arranged in advance. If Progressive have not arranged anything in advance on paper, then they are certainly in trouble I'd hope.
Quite a meaty find for Labour, it will be interesting in parliament tomorrow.
Maybe FP, I think the wording of his speech was carefully calculated. It had resonance, that's for sure. In actual fact Progressive probably asked for credit notes to be applied against their current purchases. I've just had a look at their website. The biggest employer in NZ (maybe not of FTEs). Very organised store handling of incoming goods with barcodes and transport roller belts. Lots of processes and no doubt a document to cover everything. While it might look deceptively simple when you're in the supermarket buying the weekly groceries, all of those goods that fill the shelves were transported there from some far-flung area. If we ran out of diesel over here, those shops would be empty fairly quickly.
I suspect supermarkets usually make good margins on the greens area, butchery/deli as well, but the non-perishable standard lines might be harder. Our hort farmers don't make a lot of profit unless they are super organised, so suppliers are probably screwed down across the board. Those who supply on a large scale, the owners of those businesses, seem to do OK in the end, and won't want to rock the boat. But this is the very top part of a pyramid, and virtually all of their employees might get fairly average pay to allow for the low supplier margins.
Maybe the consumer wins out of all this in the end? The race to the bottom.