https://t.co/tlXsLXZarK
26/06/2017 9:21 PM
RT @rethinkecon: 'Going Beyond Exchange' from @TheMinskys @HeskevanDoornen https://t.co/GVNeY8gyIQ
23/06/2017 8:53 PM
RT @ChrisGiles_: Hard or soft Brexit? The six scenarios for Britain https://t.co/Fk2hj8muah via @FT
23/06/2017 8:52 PM
This is worth a read: https://t.co/gjARfKQ6JB
20/06/2017 9:58 PM
RT @PositiveMoneyUK: ...and it’s almost impossible to reduce our debts without causing a recession - Welcome to the debt trap! https://t.co…
20/06/2017 9:49 PM
@Parker_Banking The pirates are in the accendency - on the pirate scale there is no difference between Trump and Pu… https://t.co/XbxmE9OJao
17/06/2017 1:11 PM
RT @PositiveMoneyUK: Why are House Prices So High? https://t.co/kYNWqTc6kP
16/06/2017 3:57 PM
@Omearanz Tax incentives point away from productive investments - asset price inflation is not productive of itself… https://t.co/zOCXPEj93U
15/06/2017 5:00 PM
@Parker_Banking People without income and assets cannot be consumers - superfluous to economy - superfluous to soci… https://t.co/EHIOqdcNXH
15/06/2017 12:18 PM
@Parker_Banking Full of rah rah platitudes: happened before no worries.Then machines replaced muscle/debt low, now… https://t.co/SMvdIfmpi1
15/06/2017 12:15 PM
Recent Post Comments
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.

Print-friendly
3
APR 10

Tax Reform




There is a great thread on Interest.co.nz, it starts here:

http://www.interest.co.nz/ratesblog/index.php/2010/03/31/90-seconds-at-9am-us-confidence-up-greek-bond-failure-irish-bank-shock-nab-to-buy-axa-austnz/#comment-68509

 

Lower broader taxes require a capital gains tax. Absent capital gains taxes our farmers have really farmed capital gains and potentially stuffed us all – reference a comment in another thread recently.

 

http://www.interest.co.nz/ratesblog/index.php/2010/03/25/have-your-say-should-may-wang-be-allowed-to-spend-nz1-5-bln-on-dairy-farms/comment-page-5/#comment-68061

 

The hot years of the ponzie scheme saw huge money flow into assets, drove up the currency and drove down the returns to the traded sector. We lost stuff offshore, we invited third world conditions into our economic zone and continued to sell, whenever possible stuff that can’t move to offshore interests.

 

To the point where New Zealand is now close to or in negative equity if assets were represented at their current market value.

 

I can see the tension between “planned” and “free” – neither is optimum. The world is complex, the more sophisticated the market response the more complex are the choice. There is not a single developed economy that does have policies that seek at one end direct and at the other influence what an economy does. In a complex world it is impossible to pick winners, but it is possible to incentivise behaviour that results in growth. Furthermore few advocate doing in New Zealand what can be done cheaper elsewhere.

 

But we need to be careful about the assessment of “cheaper elsewhere” is it today’s price? What about tomorrows price, what about carbon differences, what exchange rate is used, what interest rates. One thing is pretty sure once we lose some capability or other it is likely gone for good and thee cost of access is likely to increase.

 

Think about what happens when we squeeze the margins of our tradeable sector, the thing that goes is investment and development for the future. Go to the MAF website look at the returns on millions in assets and I doubt you will sleep tonight.


http://www.maf.govt.nz/mafnet/rural-nz/statistics-and-forecasts/farm-monitoring/2006/sheep-and-beef/sheepbeef16.htm

 

Some think my position on tax is vindictive, attacking property owners. Not so, I own several properties and several businesses, my position is, I assert, based on objective analysis and experience.

 

However bent the system the rules are the rules and good luck to any who can make a buck under the rules. It’s yours you made it you keep it or spend it - your call. Maybe spare a thiught for those left holding the candle as the marking to market proceeds - we have a long, long way to go yet.

 

Regardless, the rules need to change, that much is manifest, the lower and broader is pretty much obvious to all - it needs to be done. It will be done at some point, that much is inevitable it is just a matter of time. Why you ask, simple; what we have now is not sustainable.

 

It is a shame that we have to get so deep into the hole to start digging out but such is life.
 


tags: tax, capital gains, farms
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.