What will a CGT mean to tech? (22 Feb, 2019)

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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby Perry » Fri Feb 22, 2019 9:37 am

hagfish wrote:Just a nitpick, but 'your home' won't attract CGT if/when you sell it.

Yes it will, because my place of residence is rural and has a land area over 4500 square meters.

Of course, the gummint has yet to adopt all this fair and balanced scheme-of-extortion.

But given that exempting the family home undertaking has already been broken, it will only take a stroke of a pen to ensnare the family home, a few years from now. The exemption will be temporary and designed solely to sucker Labour voters in 2020.

The W'gton woodenheads are like councils: always trying to increase revenue; never about decreasing costs.
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby aardvark_admin » Fri Feb 22, 2019 10:22 am

Perry wrote:The W'gton woodenheads are like councils: always trying to increase revenue; never about decreasing costs.

How dare you talk about the elephant in the room?????

Sadly, when you have the legal right to pick people's pockets, you never really have to worry about how wisely you spend the money thus acquired.
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby Malcolm » Fri Feb 22, 2019 10:22 am

Wetherman wrote:The IRD will be "taking" an extra $8 billion from the economy (that's us) over the next 5 years. That's $2000 each. So we're worse off, right?

No, the proposal is to offset it with a reduction in PAYE by shifting the threshold for the lowest income bracket. Basically making workers pay a bit less.
Also is it a bit obvious that the media choose to go ask a bunch of property investors for their reactions and basically no one else?
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby aardvark_admin » Fri Feb 22, 2019 10:27 am

I notice that despite now having the perfect opportunity (and fiscal resources to do so), the Labour government (like it's National predecessors) still steadfastly refuses to follow other countries such as Australia, the UK, etc, in providing a tax-free threshold at the bottom of the income scale.

Instead of telling the poor they'll be better off by moving the tax thresholds up a bit -- why not just allow the first $xK of income to be tax-free like it is in so many other countries. This benefits *everyone* -- regardless of whether you earn $10K or $1m. But no, the government is going to fart around and still be creating needless cost by taking tax with one hand from the low-income earners and then giving it back with the other hand by way of benefits.

Lunacy!!!
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby Malcolm » Fri Feb 22, 2019 10:40 am

aardvark_admin wrote:I notice that despite now having the perfect opportunity (and fiscal resources to do so), the Labour government (like it's National predecessors) still steadfastly refuses to follow other countries such as Australia, the UK, etc, in providing a tax-free threshold at the bottom of the income scale.

Instead of telling the poor they'll be better off by moving the tax thresholds up a bit -- why not just allow the first $xK of income to be tax-free like it is in so many other countries. This benefits *everyone* -- regardless of whether you earn $10K or $1m. But no, the government is going to fart around and still be creating needless cost by taking tax with one hand from the low-income earners and then giving it back with the other hand by way of benefits.

Lunacy!!!


They looked at this proposal. I think they mentioned a $7k threshold in the report. However after analysing the data they realised that raising the threshold would provide more benefit to more lower income households then the zero rate proposal.
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby aardvark_admin » Fri Feb 22, 2019 10:51 am

Yeah, but did they also factor in the reduced cost of all that collecting-disbursment associated with taxing and delivering benefits to the low-income group? I suspect not.

NO government wants its low income earners being unreliant on the state and its "handouts" because the promise that those benefits will be increased is a powerful electioneering tool once every three years.
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby Perry » Fri Feb 22, 2019 11:42 am

Malcolm wrote:No, the proposal is to offset it with a reduction in PAYE by shifting the threshold for the lowest income bracket.

In several places, the report mentions "additional resources" for IRD.

I recall one estimate was $8M / year.

Can't see the W'gton woodenheads stumping up with that from their pockets. :twisted:
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby paulw » Fri Feb 22, 2019 2:33 pm

Malcolm wrote:
Wetherman wrote:The IRD will be "taking" an extra $8 billion from the economy (that's us) over the next 5 years. That's $2000 each. So we're worse off, right?

No, the proposal is to offset it with a reduction in PAYE by shifting the threshold for the lowest income bracket. Basically making workers pay a bit less.
Also is it a bit obvious that the media choose to go ask a bunch of property investors for their reactions and basically no one else?

They won't be paying a bit less for long if Cullen's ramblings on TV last nite are anything to go by. He was talking of making farms pay eco taxes and introducing and increasing carbon taxes on any industry that produced it like your car, power company etc. You the long suffering tax payer will be paying for this "neutral" CGT via increased pricing on goods and services they use. .
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby Perry » Fri Feb 22, 2019 3:32 pm

Given that the TWG can't agree as a group, what's the chances of . . . .
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Re: What will a CGT mean to tech? (22 Feb, 2019)

Postby greven » Fri Feb 22, 2019 5:01 pm

I would have liked to see the CGT applied retroactively (as in tax the gain back to the date of initial purchase, not tax people who sell before the law comes into effect) but that would take it from a hard sell to a very hard sell.
I foresee the IRD getting into many legal battles over valuations as of CGT day

No matter what happens, small business is screwed. Hopefully the proposals outlined will minimize the screwing of small business & be at least somewhat effective at taxing unproductive capital.
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