Showing posts from 2019

TWG Review - Marama, Who Are This "Wealthy Elite" You Speak Of?

It is all very good to beat the drums that we are going after the "wealthy elite", the problem is that as I have previously analysed , to people like Marama Davidson most of you reading this will fall under the category. Speaking at the party's summer policy conference in Wellington, Davidson pushed back on attacks against the CGT from the "wealthy elite" who she said held the political system hostage. "The resistance to the capital gains tax by the wealthy elite, who often own multiple properties, shows that our political system is still held hostage by the people who benefit from an unregulated housing market," Davidson said. No Dear, the reason there is attacks on CGT is because we all know the real wealthy elites will not be touched by it.   The real people hit will be quite normal people. We also know that supporting any of these taxes will result in demand for more taxes by mad money-hungry leftists like yourself.  "

TWG Review - Why are Maori Authorities Taxed at 17.5%?

I do not have an issue with Maori authorities being taxed at 17.5%.  Not at all.  I just wish the rate could apply to everyone. So when Maori MP, Kiri Allan (Michael Cullen's instagram BFF) gets a bit tipsy on it, there now needs to be a question answered as to WHY Maori get this treatment?  It is not "gutter ball", it is a legitimate question that Cullen covered in the TWG that Labour requested was looked at - equitable taxation. Have a look at this from Treasury back in 2010.   The paper looked at the position of moving the rate from 19.5% to 17.5%. 4. At the time that the revised Māori authority regime was proposed in 2002, it was estimated that approximately 90% of Māori individuals earned less than $38,000 per year, meaning they had a statutory tax rate of 19.5%. The 19.5% rate was therefore the appropriate proxy for the tax rate applicable to the majority of Māori Authority members. The 19.5% rate has not changed since its introduction. 5. Sub

TWG Review - Liam Dann First To Be Bullied By Ninth Floor

Yesterday the Ninth Floor via J acinda Ardern said this : "There is a large group of New Zealanders, particularly young New Zealanders now who actually, if their aspiration has been homeownership has just become harder and harder. There's a group of New Zealanders who don't have columns in the Herald, who might not be having a chance to have their say on this. Today Liam Dann is the first journalist to leave his nuts safely tucked up at home and produces this : " The noise around the Tax Working Group's proposal has become deafening. Sorry if I've been part of that ". Sorry? What the fuck for? Being a man? Actually let's not. It is blatantly clear that Labour having deemed their own handling a crisis, are now in crisis mode to shame journalists and writers in general for daring to actually have an opinion in what they have asked for in the first place - a debate.  Dirty dirty politics indeed.

TWG Review - Leftist Waring Now A "Leading Economist"

I do not know who Finn Hogan is or what year his Mummy took nappies off him and let him grow a Jesus beard and hair, but this piece of journalism really is something special. Calling Marilyn Waring a "leading economist" as some sort of authority to speak against every argument against CGT is a bit like.......well I cannot think of any analogy to describe it.  I am speechless. I know I have been living out of NZ for a long time but has the country gone to such rack and ruin that Marilyn Waring is now a "leading economist"?  NZ's economists must now be utter gobshite for that to have happened. "Every single argument was heard in every single European country that introduced it. They're tedious now, and I’m interested in a far more equitable revenue asset base. That should mean being able to make changes in company and personal tax as well." The arguments are repeated because they are all correct. And what a surprise, Warin

TWG Review - TWG Causing Leftist Wars

I will break the rules here by linking to a left-wing blog (you know because blogs are now so much fun and well read we cannot actually point out posts on "opponents" blogs) but this is a beauty. You cannot get much more tribal leftist than Martyn Bradbury and commie unionist Darien Fenton.   Enjoy this exchange of the pinkos. First up Fenton calls Bradbury old enough to be a boomer if "not far off".  The age range is 1946 to 1964. Martyn is a good decade younger than that lower range.  Then she taunts him for not having a rental property. Martyn gives her a jolly good slap back calling her a sanctimonious clown, sanctimonious hack and then another seeing to.  Fenton was an MP from 2005 to 2014. Here is her pecuniary interests in 2014 Here is what it was in 2005 You be the judge of the winner of this argument between them.

TWG Review - Expert Calls Ardern's Handling of CGT A Crisis

Damien Venuto is a name we are yet to be familiar with however after this stunning revelation today I am sure he will be quickly elevated up the ranks at The NZ Herald to senior Business editor in no time. Shock horror - Business NZ, The Employers and Manufacturers Association, the Canterbury Employers Chamber of Commerce and the Property Investors Federation were just some of the organisations to fire out releases before the ink had even dried on freshly printed copies of the report. Of course they bloody well did! Just as every single time an issue deeply affects low income workers, the Unions get their hit-men and women out to produce pro-worker material the same happens on the other end of the spectrum when you are proposing to cost business billions extra. I produced my posts because I am pro-business, pro-right wing and pro-making money.  Everyone reading this knows that.  Money doesn't solve everything but having it sure as hell beats having problems and

TWG Review - Part 1 of What Taxes Would I Introduce?

The Tax Working Group were given a terms of reference by Junior Finance Minister Grant Robertson. They were specifically excluded from raising the following: Increasing any income tax rate or the rate of GST Inheritance tax Any other changes that would apply to the taxation of the family home or the land under it, and Exceptions 2 and 3 were all political.  In other words - not even someone with a Ph.D in Communications from Te Whare Wananga o Waikato could sell them currently.  I have already explained how stupid it was from an independence stance that the TWG was not allowed to examine 3. The TWG report itself as written by the author (presumably Michael Cullen's scribe) was gagging to do it. I often discuss at geek times with likeminded people in my profession of looking after rich prick's assets, as to what taxes our rich prick clients' most hate.  In other words the taxes we are paid the most to avoid work around.  The leading contenders are al

TWG Review - The "Kiwi Way of Life"

Today we received the first soft sell on CGT by Prime Minister Ardern. She is still far off the mark in reaching the hearts and minds of the vast majority of New Zealanders on this issue however here are a few statistics I will put out there to help her.  Exhibit A Exhibit B New Zealanders’ individual net worth increased with age until around retirement. People tend to build net worth throughout their lives. In 2018, young people (15–24 years) had the lowest median individual net worth ($2,000); people of traditional retirement age (65–74 years) had the highest ($416,000). Exhibit C The median net worth of the typical Kiwi household in the June 2018 year was $340,000, up from $289,000 three years ago – mainly reflecting rising property values. The median means half of all households are richer and half are poorer than this value. In short form if you have $416,000 in assets you have more assets than 50% of those of retirement age.  If you have $340,000

TWG Review - Cullen Making CGT A Dud

Initial reaction to CGT proposals from the TWG has been pleasing.  The public hate it.  Business hates it.  Oldies who Winston Peters has to pander to, hate it.   The left are unhappy the report doesn't cover enough !. Opponents of CGT should be happy with the initial comments from Michael Cullen.  He is butchering the sale in a meganormous fashion: "Everybody else has [a capital gains tax]. The United States, the United Kingdom - these rabid 'socialist' countries like the United States have a capital gains tax," Sir Michael joked. "France, Germany, the Nordics - they all take it for granted. Many of them have higher productivity than we do. The world doesn't collapse with the introduction with a capital gains tax." "The sky doesn't fall in," concurred Garner. "If it does, we'll tax it," Sir Michael quickly quipped. It is this sort of smarmy salespitch that undermines; anything Michael Cullen wis

TWG Review - Treachery in the Ranks

I went through the background of each tax workin g group review member the other day  . Surprisingly there were three dissenters who did not agree with all the recommendations of the TWG.   Joanne Hodge, Robin Oliver and Kirk Hope.  I say "surprisingly" as first up we had policy wonk Robin Oliver dissenting for the introduction of any new tax.  Hodge and Hope were welcome surprises to stick up for the taxpayer.   While the political leanings of Cullen, van den Belt, Rosenberg and Raumati-Tu'ua would be bleedingly obvious, had the following alleged pro-business members of the TWG stood up and dissented as well it would have thrown the entire TWG into disarray and in all likelihood force Labour to drop the silly ideas altogether. Malarao works at Meredith Connell in enforcement so it is likely he would have a left of centre view on tax. So the members guilty of treachery follow - Elliffe, Nightingale and Redington.   All from business and accounting backgrounds

TWG Review - Maori and Tax

We all know that Maori collectively own large clumps of land in New Zealand.  Some of it more productive than others.  We all know that Maori own collectively tens of billions of dollars of assets in New Zealand.  A lot of it currently paying zero tax and rates at all.  Not surprisingly the TWG found the 17.5% tax rate for Maori authorities "appropriate" although they wanted it extended to subsidiaries! The TWG have in other words bent over backwards to exempt Maori as much as possible. The TWG remember is meant to be designing a system of tax that uses resources more efficiently.  That is why they dug into residential housing because there is a belief that your $ in providing rental housing is less efficient and not as good as your $ investing to artificially prop up our underperforming company CEO's and boards with compulsory Kiwisaver. So how did the TWG deal with Maori?  They effectively hospital passed it with many waffly references back to the politicians

TWG Review - Why The CGT Exemptions?

So today the long awaited Tax Working Group has come out with its recommendations.  The full report is out at  Volume 1  Volume 2 - CGT I wish to cover first how silly the exemptions in the report are in for Capital Gains Tax. The Report at 2a and 2b states the TWG: "recommends including gains and most losses from all types of land and improvements ( except the family home ), shares, intangible property and business assets". "recommends not including personal-use assets (such as cars, boats or other household durables )". 1. Why exempt the family home from Capital Gains Tax? If the only answer is that it is politically unsaleable then there is absolutely zero justification for the exemption.  If the next answer is "but other countries do not do it," then again there is zero justification.  The proposed rates of CGT to be your marginal rate without an inflation adjustment, are some of the harshest in the world and as a NZ residen

What The Huawei Is Going On With China? - Part II

So after much fuss in their shock and awe PR campaign, Huawei The Herald have suddenly gone silent with stories of China doom.  They've either run out or ceased to be supplied with them through previous channels. The last to run was on Monday that trumpeted the " China Chill hits New Zealand Schools - Student downturn may hit Kiwi parents in pockets ".  This was of course total nonsense. "Patrick Gale, principal of the country's biggest school Rangitoto College, said 71 Chinese students had enrolled to study at the college this year but 10 per cent cancelled their enrolments".   So seven.  Woopie. "Schools, private training institutes and polytechnics are worst hit. Chinese student visas dropped during the year to December by 30 per cent in private institutes, 10 per cent in polytechnics and 5 per cent in schools". So a meagre five percent in schools, ten in techs and thirty in these "private institutes".  University

What The Huawei Is Going On With China?

It is quite clear after reading NZ mainstream media's excited trumpeting this last week on China that none of them have a clue about what is really happening with the NZ-China relationship and the implications of that. This is hardly surprising as no one in a privileged position to understand what the Chinese really think of New Zealand and what they actually are doing about it, would ever talk about it out of turn let alone to media.   We are all just guessing. Anyone that influential in China understands that the Mainland not only watches its own people closely, they issue J Visas to journalists who forever are tagged and watched wherever they are.  Are journalists phones, laptops and wifi use monitored? Well I have a bridge to sell you if you think for one minute they are not and cannot be.  The Chinese regime know who they are and what they do even if they haven't ever been in the country.  And maybe even have enough information to right now know their sources