https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12223514
Lizzie Marvelly: Forget capital gains tax, we need a new plan
https://www2.deloitte.com/nz/en/page...ns-tax-nz.html
Is a capital gains tax right for New Zealand?
https://www.stuff.co.nz/business/109923112/capital-gains-tax-whats-fair-for-one-person-may-hurt-another
Capital gains tax: What's fair for one person may hurt another
Capital Gains Tax
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21-04-2019, 02:08 PMValuegrowth
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30-06-2020, 09:54 PMmoka
https://www.marketwatch.com/story/why-raising-taxes-on-the-rich-isnt-so-crazy-2019-12-09
Wealth taxes wouldn’t destroy the economy — they’d make it better.
The economy would benefit directly from a more equal distribution of income because middle- and low-income families spend a greater portion of their incomes than the very rich do, so more money would recycle through the economy.
Inequality of wealth creates other problems. The top 1% are socking away a greater share of the nation’s wealth; so much so that regular Americans are starved for the capital they need to buy homes, invest in schooling and start new businesses.
Are taxes on the rich unfair? The poor are constantly being reminded that life isn’t supposed to be fair. Get over it. -
04-07-2020, 04:57 PMSBQThe US already has already addressed taxing the wealthy. It's called the Estate or Death Duty tax which kicks in on amounts over $11 Million USD.Quote:
Originally Posted by moka
Article says the top 1% need to pay more? I agree they do. But in NZ, let's be real, how wealthy are the top 1% of NZ residents? I would say.. not so wealthy, definitely not when you compare income levels of the upper middle class in the US. There would be only a handful of NZ rich that are in the $500K/year income? Whereas in the US in that 1%, you're going to find a lot more earning that kind of money.
If CGT is implemented, then the NZ gov't & IRD need to consider removing existing taxes such as FIF (on those with overseas assets). The biggest impact CGT would have is the Kiwi Saver scheme ; it would mean NZ's tax code would look more and more like how the IRS and Australia and most other nations with CGT, address taxation. -
04-07-2020, 05:14 PMJoshuatree
Can you verify that "only a handful"
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04-07-2020, 06:03 PMPanda-NZ-
The previous govt took away the kiwisaver tax credits and original 1k contribution. This would have had more of an impact on KS
The tax free status hasn't done much to encourage domestic savings and foreign ownership picks up the "huuuge" NZ investment shortfalls. -
04-07-2020, 08:27 PMicemanOnce again you spew misinformation or straight out lies. Are you paid by the Labour Party to do this ? You should disclose if you are.Quote:
Originally Posted by Panda-NZ-
The KS tax credits are still in place but at a lower level than they were.
The Government should in my view totally stop contributions to people´s KS accounts now that the Government´s books are in such a serious negative state. -
04-07-2020, 08:46 PMmokaIt would be a more constructive discussion without the personal attacks, in bold above. You could just say I disagree, or that is not correct.Quote:
Originally Posted by iceman
Panda-NZ- was correct in that the previous government took away the $1K contribution. -
04-07-2020, 08:52 PMicemanHe/she has been called out several times in the last little while with straight out misinformation, making statements that are simply not based on fact. Yet it continues. It doesn´t matter whether I agree or disagree. His/her statement is simply not factual.Quote:
Originally Posted by moka
Edit: But I do take your point moka about my post being unnnecessarily harshly and personally worded, which is something I always try to avoid in comments on this site. Pointless editing it though as I can not edit your quote of it ! -
04-07-2020, 09:02 PMSBQI've found not data for NZ but not surprisingly, the US data here:Quote:
Originally Posted by Joshuatree
https://www.investopedia.com/persona...ou-top-1-5-10/
Annual Wages of Top Earners
The latest data from the EPI show that in 2018 annual wages for the top 1% reached $737,697, up just 0.2% compared to 2017.
I think it's fair to say when it comes to the top 1% of earners, NZ's 1% wouldn't be near this US figure.
Not sure about the tax free status of KS. Tax unfortunately isn't a well discussed topic among NZ financial advisors. I don't see how they can provide any meaningful advice to clients without breaking down the tax that listed corporations pay, and the tax on dividends that shareholders receive (if not partially input credited), and FIF tax if the shares are foreign based. If there's one thing certain, Kiwi Saver has been a landfall money maker for IRD. This is very different to the tax approach to share investments in the US & Canada where on most part, small investors have the ability to invest tax free (ie ROTH IRA):Quote:
The previous govt took away the kiwisaver tax credits and original 1k contribution. This would have had more of an impact on KS
The tax free status hasn't done much to encourage domestic savings and foreign ownership picks up the investment shortfalls.
https://www.youtube.com/watch?v=q63F1pBrUHA
Neither gov'ts in NZ have proposed what assets would have CGT - nor how it would impact other investments - Kiwi Saver? it's not that easy of an issue to clarify because NZ has come form an unusual stance of having no form of tax on capital gains. -
04-07-2020, 09:13 PMPanda-NZ-
There is a portion of Kiwisaver, maybe the majority, where tax isn't paid since its a capital gain.
Also keep in mind that it cannot be retrospective which means that you keep all of the existing gains to the current date which is quite fair.