Nat/act/nzf 2023

[Bjauck]

It's about time tax cuts came in. I just finalised my tax return for the 2023 tax year and my tax bill is far too high for my liking. Thieves the lot of them.

In the OECD Tax as a proportion of gdp ranges from 18% in Mexico to 46.5% in Denmark. In NZ it is 33.8% just below the OECD average. Of course NZ is an outlier not having a general CGT or stamp duties or inheritance tax. So income tax bears a bigger burden.

[Balance]

In the OECD Tax as a proportion of gdp ranges from 18% in Mexico to 46.5% in Denmark. In NZ it is 33.8% just below the OECD average. Of course NZ is an outlier not having a general CGT or stamp duties or inheritance tax. So income tax bears a bigger burden.

Any comparison must take into consideration the deductions which are allowed in some of the OECD countries (eg. Mortgage interest & school fees) which are not in NZ plus GST/VAT rates.

Otherwise, just a lot of garbage being debated about which country has the highest tax rates.

[Bjauck]

Any comparison must take into consideration the deductions which are allowed in some of the OECD countries (eg. Mortgage interest & school fees) which are not in NZ plus GST/VAT rates.

Otherwise, just a lot of garbage being debated about which country has the highest tax rates.

The proportion of GDP paid in all taxes is the best comparison for tax burdens as it compares actual tax paid/actual gdp. Certainly nz income tax has very few allowable deductions. You cannot deduct school fees, health insurance, owner occupied mortgage interest.

[Balance]

The proportion of GDP paid in all taxes is the best comparison for tax burdens as it compares actual tax paid/actual gdp. Certainly nz income tax has very few allowable deductions. You cannot deduct school fees, health insurance, owner occupied mortgage interest.

Two points to note:

1. We really should be comparing ourselves with UK, Canada, Australia and US. Against them, we are at 33.8% vs 35.3%, 33.2%, 29.5% and 27.7% respectively. Can see why Australia with a lower tax take of 4.3% below NZ why ever more NZers are migrating there.

2. Countries with the higher %tage tax take to GDP (like Norway on 44.3%) typically offer extremely generous welfare benefits which their citizens accept as quid pro quo for their higher taxes.

NZ really needs a CGT to broaden the tax base while bringing the overall tax take on incomes & wages down.

https://www.oecd.org/tax/revenue-sta...ew-zealand.pdf

[Joshuatree]

It's about time tax cuts came in. I just finalised my tax return for the 2023 tax year and my tax bill is far too high for my liking. Thieves the lot of them.

Timing couldn't be worse.So much for the "Rock Solid "calculations.More inflation ahead.

[blackcap]

Timing couldn't be worse.So much for the "Rock Solid "calculations.More inflation ahead.

No, not more inflation ahead. Tax cuts in conjunction with less govt spending (ie let people decide where to spend their own money) will mean the inflation effect will be neutral.

[iceman]

No, not more inflation ahead. Tax cuts in conjunction with less govt spending (ie let people decide where to spend their own money) will mean the inflation effect will be neutral.

It is just too funny to watch the squealing about the tax cuts and how they will be inflationary. How often have we heard this argument used when Governments have announced announced new expenditure, often just a total waste that achieves absolutely nothing ? Latest example only a couple of days ago when the Government announced increased early childhood support. Did any media or Labour supporter's on here slam it as inflationary ?
I think we should just wait for the Budget and see what they intend to do.

[Bjauck]

Two points to note:

1. We really should be comparing ourselves with UK, Canada, Australia and US. Against them, we are at 33.8% vs 35.3%, 33.2%, 29.5% and 27.7% respectively. Can see why Australia with a lower tax take of 4.3% below NZ why ever more NZers are migrating there.

2. Countries with the higher %tage tax take to GDP (like Norway on 44.3%) typically offer extremely generous welfare benefits which their citizens accept as quid pro quo for their higher taxes.

NZ really needs a CGT to broaden the tax base while bringing the overall tax take on incomes & wages down.

https://www.oecd.org/tax/revenue-sta...ew-zealand.pdf

I don’t think those big English speaking (mostly) countries a more fitting comparison than the Scandinavian countries (who are mostly proficient in English anyway)with similarly sized populations? I would say we have more similarities with Denmark than the USA anyway.Australia is big federal nation, as is Canada. Ireland would have greater similarities to NZ, except it has a European sugar daddy and in effect it can shelter behind NATO, without having obligations.

Certainly NZ needs to tax young kiwi workers less if it wants to keep more of them in NZ. Otherwise we end up training skilled workers for the benefit of Oz

[Panda-NZ-]

True it's like saying the tax take is high in a country with only 100 people.

Well, duh.

[Daytr]

Two points to note:

1. We really should be comparing ourselves with UK, Canada, Australia and US. Against them, we are at 33.8% vs 35.3%, 33.2%, 29.5% and 27.7% respectively. Can see why Australia with a lower tax take of 4.3% below NZ why ever more NZers are migrating there.

2. Countries with the higher %tage tax take to GDP (like Norway on 44.3%) typically offer extremely generous welfare benefits which their citizens accept as quid pro quo for their higher taxes.

NZ really needs a CGT to broaden the tax base while bringing the overall tax take on incomes & wages down.

https://www.oecd.org/tax/revenue-sta...ew-zealand.pdf

Do those figures include duties and State Taxes? Stamp duty on property in Australia is pretty high for example.

In NZ we need to adjust the tax brackets higher and offset that with a CGT & inheritance tax.

I wouldn't mind paying more tax like Scandinavian countries do if we got the services they do as well, but I can't see that happening as all NZ Governments spend money poorly on average.