NZ used to be (and probably still is) one of the countries with the lowest compliance costs to do business. And while I hear the lefties shouting "tax them to the hilt" - it is good for all of us if the compliance costs for business are low. This helps particularly small companies and they are the life blood of our economy. Lower compliance cost - more SME's, more jobs.
So - even if our government would manage to change the taxes in a way which does not increse the overall tax take (pull the other one ) - it drastically would increase compliance costs for business. They do have to pay people to value regularly their assets - and the accounting to calculate the tax burden gets much more expensive. Given that business (and the consumer) are paying this burden - we all will lose without gaining a cent - unless for tax accountants, of course - they would gain a lot!
Is it worth it? I seriously doubt it. Will Labour try to push it through? They probalby will despite understanding that it will damage the country. It might increase poverty and unemployment, which is good for them (more beneficiaries, more Labour voters).
Can't trust Labour to do the right thing (which would be ditching this proposal) - better make sure we get the next time the right people back into government.
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