The Covid tax is coming (9 Sep, 2021)

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The Covid tax is coming (9 Sep, 2021)

Postby aardvark_admin » Thu Sep 09, 2021 8:05 am

This column is archived at: https://aardvark.co.nz/daily/2021/0909.shtml

How will the government claw back all the money spent dealing with the CV19 pandemic?

With wage subsidies alone costing around $1b per week during a level 4 lockdown, plus the cost of the vaccination programme it is clear that we have spent a fortune protecting our people from the worst of things -- but that debt will have to be repaid.

How do you think the government will recoup that money?

A hike to GST? Hike to income-tax rates? A new, separate healthcare tax (like so many other nations have)?
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Re: The Covid tax is coming (9 Sep, 2021)

Postby GSVNoFixedAbode » Thu Sep 09, 2021 8:21 am

There is a very small % of the population holding a very large % of the total wealth in New Zealand now - the Middle class is rapidly evaporating and will continue to do so.

We will need a tax system reset - perhaps back to the days when that small cluster of the super-rich pay a more significant tax percentage. 33% is a joke when those who are earning (including 'bonuses) multi millions per year have the resources to often hide even that relatively small amount to pay. Perhaps a new tax bracket for those earning > $3M of 50%. No, they won't all flee offshore as NZ is highly desirable bolthole for this bracket! Remember, that's not 50% of $3M, that's still mostly 33% of $3M, and 50% of anything above $3M.
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Re: The Covid tax is coming (9 Sep, 2021)

Postby aardvark_admin » Thu Sep 09, 2021 8:24 am

GSVNoFixedAbode wrote:No, they won't all flee offshore as NZ is highly desirable bolthole for this bracket!

True... but thanks to the wonders of well-paid accountants, friends in high places and technology, the very rich can quite easily ensure that their wealth stays hidden, out of the reach of the taxman, history has shown this to be the case throughout the ages.
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Re: The Covid tax is coming (9 Sep, 2021)

Postby phord » Thu Sep 09, 2021 8:38 am

There is a very small % of the population holding a very large % of the total wealth in New Zealand

E.G. Graeme Hart.
Worth 8.6 Billion USD.
This is obscene for a country of only 5 million!

https://www.forbes.com/profile/graeme-hart/
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Re: The Covid tax is coming (9 Sep, 2021)

Postby Perry » Thu Sep 09, 2021 8:49 am

Tax! The word conjures up all manner of ideas, doesn't it? As I see it, the one that gets the least attention - but is in need of it most - is eliminating needless govt. spending.

Anyways, all this dosh that comrade commissar RobUsome has borrowed by way of (I think) an over-subscribed government bond issue, the interest rate is 0.5% and most of the bonds can be rolled over. Only parcels over (I think) $5B are inflation adjusted. (Most are under that figure.) $80B acceptance with another $40B options remaining.

Chances are repayment may be deferred for a long time. Though that won't stop the debt being used as a political matter, I imagine.
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Re: The Covid tax is coming (9 Sep, 2021)

Postby GSVNoFixedAbode » Thu Sep 09, 2021 9:02 am

Perry wrote: As I see it, the one that gets the least attention - but is in need of it most - is eliminating needless govt. spending.

... comrade commissar RobUsome

Go on Perry, tell us how you really feel :lol:
Remember the current Govt spending is providing free vaccinations to all NZers, and has kept people alive over the past 18 months. The more capitalist models of (non-)government result in what's happened in the USA: a small number of obscenely rich, benefiting while the rest suffer & die. No, that's not hyperbole, that's reality.

We have a centre-left Capitalist model government at present, compared to the other main option of centre-right. Both with massive Social-good underpinnings. Comparing the current Govt to communism shows a serious lack of understanding of Communism, Socialism, Capitalism, and the Centralist. [/soapbox]
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Re: The Covid tax is coming (9 Sep, 2021)

Postby hagfish » Thu Sep 09, 2021 9:28 am

If the NZ Government wanted to cancel some money, it could impose a capital gains tax of, say 50%, on every property sold from now on. No loopholes; no exceptions. All the money the govt has issued lately seems to have sloshed into housing. Kill two birds with one stone. Three birds, if you include the government that enacts such a measure :mrgreen:
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Re: The Covid tax is coming (9 Sep, 2021)

Postby shadesnz » Thu Sep 09, 2021 9:33 am

I am outraged. Far too many people that I know are paying out too much money including interest and capital on private debt. A covid tax will see a friend or two on the streets.
I'd rather Wellington declare NZ bankrupt.
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Re: The Covid tax is coming (9 Sep, 2021)

Postby Perry » Thu Sep 09, 2021 9:56 am

GSVNoFixedAbode wrote:Remember the current Govt spending is providing free vaccinations to all NZers,

If you really believe that, then there's no hope for you.

Who ultimately pays for anything 'free' given out by the gummint?

Clue: The word starts with a T and ends with an R.
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Re: The Covid tax is coming (9 Sep, 2021)

Postby hagfish » Thu Sep 09, 2021 10:20 am

Perry wrote:Who ultimately pays for anything 'free' given out by the gummint?

Clue: The word starts with a T and ends with an R.

This is an amazingly common misconception.
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