Originally Posted by
Bjauck
Laffer "economics" expounded in the USA? Where they have a general Capital Gains Tax and death duties too?
It is arguable that in NZ that any "trickle-down" could dry up with Income Tax rates even below 50% as the more highly paid and wealthy invest their tax-paid money in long-term assets with capital gains. The Laffer envelope has a more limited application to the NZ tax environment?
Tax cuts for higher income earners will more likely lead to a drop in overall tax returns as any boost in GST does not compensate for the reduction on income tax receipts. With the wealthy able to leverage their increased net income into investments, with capital gains comprising the bulk of their return.