Tax - What is it for?

[SBQ]

I view taxation is a way for the gov't to provide 'stability' or 'security' for the country. The private sector can not provide for everything and key issues like military and defense is a good example where no private individual and property provide security for the whole country they're living in. This must be done at a governing level. The "Free Market" Laissez-faire model does not work as it's too individualistic. We can see this with the problems why NZ lacks the high # of housing builds as infrastructure builds are funded entirely by the individual developer (whereas in Canada, both municipal/provincial/& federal fund infrastructures). So when we pay taxes, we ensure our gov't leads our country in a corrupt free, stable, and safe manner.

The problem in NZ is our tax system is not fair. The high income earners comprise most of their wealth in owning tax free capital gain real estate. While the next generation that are not born into wealth, have a more difficult chance in buying their first home. All the incentives in NZ is pushed into owning real estate which is a far less productive asset than owning shares of companies or starting new businesses venture or resource extraction.

[ValueNZ]

In practice it's a choice of buying $100k in shares or that luxury vehicle.

In that case it's the Luxury vehicle hands down.

A purchase of 100k in shares is simply a transaction where the buyer receives the shares and the seller receives the cash.

Whether it is better for society if the shares are transacted or the luxury vehicle is bought is dependent on what the seller does with the cash. If the seller saves the cash in the bank it would be better for society that the shares be transacted.

The only time I can think of that it is better that the luxury vehicle is bought is if the seller withdrew all the cash and stashed it under their mattress. Highly unlikely...

[moka]

I view taxation is a way for the gov't to provide 'stability' or 'security' for the country. The private sector can not provide for everything and key issues like military and defense is a good example where no private individual and property provide security for the whole country they're living in. This must be done at a governing level. The "Free Market" Laissez-faire model does not work as it's too individualistic. We can see this with the problems why NZ lacks the high # of housing builds as infrastructure builds are funded entirely by the individual developer (whereas in Canada, both municipal/provincial/& federal fund infrastructures). So when we pay taxes, we ensure our gov't leads our country in a corrupt free, stable, and safe manner.

The problem in NZ is our tax system is not fair. The high income earners comprise most of their wealth in owning tax free capital gain real estate. While the next generation that are not born into wealth, have a more difficult chance in buying their first home. All the incentives in NZ is pushed into owning real estate which is a far less productive asset than owning shares of companies or starting new businesses venture or resource extraction.

The “Free Market” Laissez-faire model is definitely not working with housing in NZ. The current situation proves that the government needs to be very active in building homes for the lower end of the market. A high level of home ownership has many benefits for a country.

https://www.nzherald.co.nz/business/forever-home-the-nation-wide-economic-benefits-of-owning-a-home/SQAQQTNWZ42PLE3AZXBX4MQCUE/

The nation-wide economic benefits of owning a home.
Getting 2000 people out of a rental into their forever home could save the Government $17.5 million over 15 years.
The findings are part of a trio of research papers released today examining social and economic costs of renters versus those living in their own home.

It suggested getting people into their own home could alleviate a number of issues, such as ill-health linked to poorer quality rentals and a lack of community engagement among tenants that could be a factor in criminal offending, and thus save the Government spending on health and corrections.

One study, carried out by Business Economic Research Ltd (Berl), estimated helping renters move into their own home could save millions in taxpayers dollars over time.
"Moving people along the housing continuum reduces the long-term liability to the Crown, improves household outcomes, builds communities and is morally and fiscally the right course to take."

A second piece of research, an analysis of international studies carried out by the Family Centre Social Policy Research Unit, supported Berl's findings.

[Logen Ninefingers]

The “Free Market” Laissez-faire model is definitely not working with housing in NZ. The current situation proves that the government needs to be very active in building homes for the lower end of the market. A high level of home ownership has many benefits for a country.

https://www.nzherald.co.nz/business/forever-home-the-nation-wide-economic-benefits-of-owning-a-home/SQAQQTNWZ42PLE3AZXBX4MQCUE/

The nation-wide economic benefits of owning a home.
Getting 2000 people out of a rental into their forever home could save the Government $17.5 million over 15 years.
The findings are part of a trio of research papers released today examining social and economic costs of renters versus those living in their own home.

It suggested getting people into their own home could alleviate a number of issues, such as ill-health linked to poorer quality rentals and a lack of community engagement among tenants that could be a factor in criminal offending, and thus save the Government spending on health and corrections.

One study, carried out by Business Economic Research Ltd (Berl), estimated helping renters move into their own home could save millions in taxpayers dollars over time.
"Moving people along the housing continuum reduces the long-term liability to the Crown, improves household outcomes, builds communities and is morally and fiscally the right course to take."

A second piece of research, an analysis of international studies carried out by the Family Centre Social Policy Research Unit, supported Berl's findings.

‘The free market is not working in housing’.

Where is the free market in evidence in the great New Zealand property ponzi scheme?

A central bank that drives the OCR to an extraordinary low of 0.25%….how is that ‘the free market’?

Successive governments that facilitate the mass immigration of 100,000+ people a year to NZ over many years…..how is that ‘the free market’?

Successive governments that - through taxation policies - skew investment towards residential property….how is that ‘the free market’?

Successive governments that allow people to gut their KiwiSaver (purportedly ‘retirement savings’) accounts to buy residential property….how is that ‘the free market’?

Successive governments who dole out taxpayer money as ‘first home buyer grants’….how is that ‘the free market’?

[dln]

https://teara.govt.nz/en/taxes

[Balance]

‘The free market is not working in housing’.

Where is the free market in evidence in the great New Zealand property ponzi scheme?

A central bank that drives the OCR to an extraordinary low of 0.25%….how is that ‘the free market’?

Successive governments that facilitate the mass immigration of 100,000+ people a year to NZ over many years…..how is that ‘the free market’?

Successive governments that - through taxation policies - skew investment towards residential property….how is that ‘the free market’?

Successive governments that allow people to gut their KiwiSaver (purportedly ‘retirement savings’) accounts to buy residential property….how is that ‘the free market’?

Successive governments who dole out taxpayer money as ‘first home buyer grants’….how is that ‘the free market’?

Go to Singapore and observe how a second world country successfully implemented a public housing policy alongside a free market to deliver affordable homes to be OWNED 75% of its population.

NZ can learn a lot but is either too dumb or too arrogant to learn, building rental state houses instead where substandard housing and irresponsible state tenants combine to deliver the crime ridden housing ghettos.

[Azz]

Go to Singapore and observe how a second world country successfully implemented a public housing policy alongside a free market to deliver affordable homes to be OWNED 75% of its population.

Balance, sounds interesting, and I'm reading up on it; but can you provide a succinct rundown here on how it works? :-) Question: There is a freehold market?

[fungus pudding]

Balance, sounds interesting, and I'm reading up on it; but can you provide a succinct rundown here on how it works? :-) Question: There is a freehold market?

Yes, for multi-squillionaires. Most rent.
https://www.singaporeexpats.com/hous...-singapore.htm

[Azz]

Yes, for multi-squillionaires. Most rent.
https://www.singaporeexpats.com/hous...-singapore.htm

Thanks, I'll have a read!

Singapore is probably quite a bad comparison country to NZ, right off the bat. I mean, don't we have much more land?

[Bjauck]

‘The free market is not working in housing’.

Where is the free market in evidence in the great New Zealand property ponzi scheme?

A central bank that drives the OCR to an extraordinary low of 0.25%….how is that ‘the free market’?

Successive governments that facilitate the mass immigration of 100,000+ people a year to NZ over many years…..how is that ‘the free market’?

Successive governments that - through taxation policies - skew investment towards residential property….how is that ‘the free market’?

Successive governments that allow people to gut their KiwiSaver (purportedly ‘retirement savings’) accounts to buy residential property….how is that ‘the free market’?

Successive governments who dole out taxpayer money as ‘first home buyer grants’….how is that ‘the free market’?

NZ Terminology:
“The free market” = regressive tax and government policies and interventions that benefit landowners, farmers and other holders of assets.
”Socialism” = anything that may counter regressive tax, and promote expenditure on public health and welfare..