Labour / NZ First Government

[Rep]

Yes. I get all that. But they have clarified there is no change to company tax, making PIE income all that much more appealing. Robertson was emphatic that there would be no extra taxes in this term, so I doubt they will tamper with the PIR, and he strikes me as an honest politician - a man of his word.

I think that the PIR adjustment would simply be following through on the 39% rate - otherwise it's another very big door that allows taxpayers to avoid the 39% tax.

[Bjauck]

Yes but it's only for the top 2% of income earners, so stuff them, that's the attitude we should have right?

‘Most of the wealthy have company structures, trusts and many of their gains also come in the form of untaxed capital gains. If you increase income tax rates then that would be an extra incentive to try to ensure that their gains come in the form of untaxed capital gains etc. as opposed to income.

[winner69]

Interesting observation ..on Stuff

Oliver noted the $180,000 threshold at which Labour has proposed the new rate should kick in, was also the top salary that could be earned by MPs who did not have ministerial responsibilities.

[Zaphod]

‘Most of the wealthy have company structures, trusts and many of their gains also come in the form of untaxed capital gains. If you increase income tax rates then that would be an extra incentive to try to ensure that their gains come in the form of untaxed capital gains etc. as opposed to income.

Yes, agreed. This will just perpetuate or even exacerbate the existing issues with our tax system. Overall, I think that this proposal is just more populist policy designed to win an election, than anything substantial aimed to improve the well being of the country.

Interesting observation ..on Stuff

Oliver noted the $180,000 threshold at which Labour has proposed the new rate should kick in, was also the top salary that could be earned by MPs who did not have ministerial responsibilities.

The opposition could have a field day with that!

[fungus pudding]

‘Most of the wealthy have company structures, trusts and many of their gains also come in the form of untaxed capital gains. If you increase income tax rates then that would be an extra incentive to try to ensure that their gains come in the form of untaxed capital gains etc. as opposed to income.

Where's the evidence that most wealthy have company structures etc?

[stoploss]

[QUOTE=fungus pudding;842753]Where's the evidence that most wealthy have company structures etc?[/https://i.stuff.co.nz/national/polit...r-their-assets

[fungus pudding]

[QUOTE=stoploss;842766]

Where's the evidence that most wealthy have company structures etc?[/https://i.stuff.co.nz/national/polit...r-their-assets

Politicians are a very small % of the population. Not 'most people'.

[Raz]

Where's the evidence that most wealthy have company structures etc?

There is a report from the iRD high net worth compliance group (family groupings greater then $ 50 million) showing that, it also included established charities in the mix.

The incidence of these structures, cost benefit wise, start to be more compelling from 1-2 million liquid assets/investments. Top 1% in NZ is median household wealth around 6.5 million.

[moka]

[QUOTE=stoploss;842766]

Where's the evidence that most wealthy have company structures etc?[/https://i.stuff.co.nz/national/polit...r-their-assets

Evidence that lots have trusts, and some would have companies.

The data show that New Zealand’s wealthiest 1% of adults – around 38,000 people – have $141bn in trusts. Another 150,000 or so people, rounding out the rest of the wealthiest 5%, have trusts worth a further $122bn.
https://www.theguardian.com/world/20...s-astounding-w

[artemis]

There is a report from the iRD high net worth compliance group (family groupings greater then $ 50 million) showing that, it also included established charities in the mix.

The incidence of these structures, cost benefit wise, start to be more compelling from 1-2 million liquid assets/investments. Top 1% in NZ is median household wealth around 6.5 million.

Not too hard to be in the top 5% by assets if the mortgage is paid off. These 'wealth' numbers should take account of age, makes no sense to compare 20s with 60s.

Stats NZ reckon the wealthiest 1 per cent of New Zealanders have assets of $3.89m, although some people suspect the figure may be much higher given people tend to under-report their wealth. To be in the top 5 per cent, you need to clear $1.4m.

https://interactives.stuff.co.nz/202...-to-be-wealthy