Originally Posted by
Sgt Pepper
My sister retired to Wanaka some years ago and observed that many are in the position of being asset rich but cash poor as indeed you describe. Tax is a complex subject, but I am of the opinion that middle to high income earners who are in receipt of a salary do have a genuine grievance with an analysis of the proportion of the total tax take they pay. Surprisingly though I suspect if you canvass people about the tax they pay on their income per year many wold have no idea thanks to PAYE. I believe income tax should be applied as thinly and as evenly as possible.
Some tax reform ideas, in no particular order
All tax payers must be sent a statement of the tax they have paid at the end of the financial year.
Savings accounts and all dividends should be tax free
GST should be raised to 20%
Income tax should attract the highest rate if you work over 65 and elect to take NZ Super
Abolish all charitable tax deductions, including Church donations
Offer salary earners option of opting out of PAYE and having 1 annual tax payment .
Of course no government will ever implement any of this