28 Comments

Imho Labour should propose and sell the following at the 2023 election:

Tax free income to 14k

GST off food

Free public transport for all

Paid for with:

Capital gains tax

Wealth tax

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author

I agree, I'd vote for that. Making the first income tax free and raising the tax rate on very high income is the best way to target tax cuts where they are most needed. I'm in two minds about the GST off food due to the complexity of administering it. Free public transport would really increases usage and remove a lot of admin costs. Labour won't campaign on a CGT, but the Greens can of course which creates an opportunity for people to support it.

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Re: GST off food. Other countries manage just fine. And there are WAY more complex things IRD deals with all the time. It's certainly not complex at the POS end of things with the technology available today.

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author

Sadly I meant actually determining what is food. Usually suggestions for removing GST are on fruit and veges or "heathy" food, so what qualifies? A potato - sure, a pack of crisps - maybe, fried chips - don't know... I guess I'm also skeptical that retailers would pass the saving on in full. Perhaps we should be doing away with GST completely and replacing it with other taxes not based on things like purchasing the necessities of life?

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Oct 10, 2022Liked by Nick Rockel

All good points which is why they have kept GST consistent across everything. Also your point that retailers would not neccesarily pass on the savings on GST. I'd support doing away with GST altogether. It is the poorest people who pay GST on everythingbthey purchase. Well off people have ways around it, and more options.

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Easy: copy Australia system.

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Maybe the Fruit & Veges need to be considered ‘fresh’ before the no GST is applied to them.?

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Oct 10, 2022Liked by Nick Rockel

All good suggestions Nick. I do agree that we should have first 10 or 15 thousand dollars of income free before income tax kicks in. And our top tax rates are lower than many countries including Australia. My Melbourne based son frequently has a bit of a moan about the higher tax rate he has to pay vs what he'd pay in NZ.

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The problem is that the uber wealthy have really scared people over what a Capital Gains Tax would mean. I know people who would have everything to gain from a Capital Gains Tax vehemently opposing it as they had bought into the argument that they would be disadvantaged by it e.g. if they were selling their family home which we know the CGT would not have applied to. Also a whole generation of NZers have grown up with the knowledge that investing in property is the road to making a lot of money easily and they are very reluctant to see that pathway closed. The wealthy are very powerful in their messaging via the msm which is absolutely hopeless at interrogating them and the misinformation and fearmongering they peddle.

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Yes I agree. So much of our media lean to the right- Hoskin and Co for example. Stuff runs many more articles from right wing commentators like Eric Crampton,John Bishop,Damian Grant, and Ben Thomas and others who put forward a left leaning perspecive.

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Hosking, ZB, NZHERALD belongs to Murdoch media : APN , News Corp Australia. Same as Fox news . So same kind of rubbish as Sky, again same owner.

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Oct 10, 2022Liked by Nick Rockel

Yes. Good suggestions.

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Oct 10, 2022Liked by Nick Rockel

I could find a few things on that list with which to agree. Well said.

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Yes. Australia has first AUD18200 tax free. GST at 10% , plus free on essential foods, Countdown could get it fast implemented as its Woolworth. We need a Land tax asap: again like Australia at 2% on ALL properties but residence, all foreigners have to pay it including us kiwis if we are not in Oz for 200 days : I had to pay 13k for 2 years) , CGT , Medicare 2% levy , Stamp duty tax. Raise highest earners tax to 45% . Like ALL OECD countries have it. You want to be like Australia? This is how you could be. All saying salaries are higher : yes and taxes are matching .

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All good ideas

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Oct 10, 2022Liked by Nick Rockel

Wayne Brown has already shown what a crass ,narcissistic old man he is. ( I say "old" knowingly because he is only a year older than me. I hope I have more grace in my "oldish "age than he shows )He obviously has no respect for democratic and legal processes in calling for the boards of the three council owned entities to just walk away. Good on them for giving him the raised finger, and continuing to carry on with their roles. The analogy to Trump is appropiate -Brown seems to think he will have all the say as mayor.despite having an elected council . Will there be a swing to the right at next year's national elections. !Having a conservative mayor ,and local council, with Labour MPs representing us in Central govt. in all four electorates is not new for Dunedin. The departing mayor is a Green Party supporter. I believe he did a good job,and pulled the council back from joining the group of councils that rejected Three Waters.The incoming mayor is vehemently against Three Waters so we can expect another reversal. The PM said in an interview this week that the government are open to re-looking at the Three Waters legislation. The legislation needs to emphasis the fact that local councils do not lose their assets. There has been so much fear mongering about council assets and co-governance arrangements. Grant Robertson made the point a couple of weeks ago that the government have not yet set the tax structure for the next budget in 2023. He hinted at changes. In my opinion they do need to re-set the tax levels to be more equitable to middle,and lower paid workers. And it would be silly not to do so in an election year.

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He was an absolutely disgusting mayor for the Far North! Shouted people down, ignored the West Coast entirely, allowed his own dubious developments to go through... at one meeting I was presenting at (on the agenda) he told me to sit down and shut up, he didn't eant to hear what I had to say. I was presenting on behalf of a community organisation and our right was simply taken away by that egotist. Auckland is going to be sorry!

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Oct 10, 2022·edited Oct 10, 2022Liked by Nick Rockel

Excellent summary. Thank you. I am pro 3 waters being pushed through though. Councils have made a hash of investing in the infrastructure needed and the costs of not doing it is huge (fiscal, environmental and health). Taxpayers and ratepayers need better info about this aspect imo. Re Co-Governance I see the opposition to this as racist and mostly a classic dead cat strategy.

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We need Three Waters so our small, low-income community can finally remove the effluent from 4 antiquated systems from the iconic Hokianga Harbour. Not remotely possible through rates!

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Oct 11, 2022Liked by Nick Rockel

I really like what you have written Nick as it resonates with what I'm hearing out here in provincial NZ. I'm retired now, as are most of the people I mix with on a daily basis. Listening to them, every single one of them voted. Old Pakeha people vote - that's how Wayne Brown was elected. They are good people but the messages they are hearing about 3 Waters and co-governance are scaring the living daylights out of them. David Seymour sounds sensible and spot on to them. I also wonder if those on the left are their own worst enemy as it seems and is certainly seized on by the media that no matter what initiatives the government puts in place, it's never enough. Their constant unhappiness is transmitted to the people they represent who get the message that the Labour government is "doing nothing" for them. We hardly heard a peep out of the unions (especially the professional unions - I don't include E Tu here as it's been consistently excellent in its advocacy) under 9 years of the Nats but they've never stopped whingeing under the current government. The government needs to take some decisive and very obvious steps to make the taxation system fairer amongst other things. Unless those who are currently disengaged from our democratic processes see real benefits for them from a Labour government, they will show their unhappiness by not voting.

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author

Thanks for that thoughtful response, very well said.

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Oct 10, 2022Liked by Nick Rockel

Scary as!!!

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Personally , I am anti tax cuts/bracket adjustment - the amount you will receive (under $180K) is almost meaningless , we need to keep funding Health, Education - esp , Fire Service, Police etc at a decent rate - to keep these areas fully staffed with committed , passionate people.

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If you are poor any amount of tax relief is quite meaningful. Right with you on fully funding those service you quoted.

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Very thoughtful piece Nick thank you. One of the difficulties for the Govt. seems to me to be the MSM who rarely publish positive outcomes and instead inflict opinion writers on us. Look at this line up: Hosking, Hawkesby, DuPlessis Allen, Paula Bennett, Mathew Hooten. Why on earth would I want to buy a NZ Herald? Statistics show the Govt. has managed the economy better than previous National Govts. yet you wouldn't know it from the MSM and it is getting the positives that have been achieved to the voters that would seem the greatest problem next year. Tax rates are but a start.

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It is Murdoch media ! And this Brown media advisers if you read the Stuff article about, are same who advised ScoMo and advise Luxon . Lie lie ignore questions, accuse others of not doing their job, waste even if not proven by facts ...that's what got Boris, Trump, ScoMo in : all supported by Murdoch media. Australians got wiser and voted them out .

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Excellent read Nick. Left me pondering and solemn.

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I agree with Darren’s suggestions. Simple solution s and clear message. Everyone counts

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