The Tax Plan
I think like many I was a little disappointed in John Key's speech in parliament the other day. I was not expecting too much but what we did get was not really enough either. In one hand, everyone is going to be getting tax cuts, but we may end up paying it back with an increase in GST so I saw little point in that. So some things just didn't stack up.
Taxes.
We're taxed to the blazes in New Zealand as it is. Call it taxes or levies its a tax and when you have tax on tax on tax it just makes it hard for people to live. Yes, increases in allowances from places like Working for Families and other welfare assistance will help those on very little incomes there is some truth to the fact that a large tax cut at the upper end of the scales will benefit them more than a tax cut for those on smaller wages or incomes. But a GST hike of relative amounts really negates any return on income tax drops.
When GST was introduced it was 10%. Now its 12.5% on everything. That change in GST happened in 1989 so its been 20 years since it was last increased. Not bad really. But lets look at something here. Something that is $15.50 needs to add $1.94 of GST to the price making it $17.44. The same item at $15.50 increasing GST to 15% makes it an additional $2.33 $17.83. Making it an additional 39c. Does not look like much huh...but...add it up...you could easily in your weekly shopping bill be spending another $50 odd on your essentials.
It is hard to save in this environment but we are working on it in our home. But I would like to see exactly what is going to happen before I'm any more positive on what is going to come. It's no point giving me $3 back in income tax if $5 is going towards GST.
The talk recently about increasing levies on smokes and alcohol is maybe on avenue for increasing GST on unhealthy products or things of that nature alone while reducing or cutting GST on basic healthy items like fruits, veges, milk etc. Stack the GST on tobacco and booze.
Mining.
Personally, I've got no issue with mining, but I do if it has a harsh impact on the appearance of our nation. The last thing you want to see in the middle of our national parks is a big gaping hole where an open pit mine is.
I was Google Earthing the other day and came across the ugly pictures around the town of Waihi where the open mines are. Thats not a pretty look. Granted, one of the mining company guys appeared on Breakfast and said some of them would be under ground mines, and I don't have a problem with that as long as they are safe and don't collapse under weight and ruin our mountains. But these are resources that are there to help us. Either domestically or internationally they are there for a reason...to be used.
I hope this process is carefully thought out. Many people stand to lose more than they gain and some gain more than they need.
Taxes.
We're taxed to the blazes in New Zealand as it is. Call it taxes or levies its a tax and when you have tax on tax on tax it just makes it hard for people to live. Yes, increases in allowances from places like Working for Families and other welfare assistance will help those on very little incomes there is some truth to the fact that a large tax cut at the upper end of the scales will benefit them more than a tax cut for those on smaller wages or incomes. But a GST hike of relative amounts really negates any return on income tax drops.
When GST was introduced it was 10%. Now its 12.5% on everything. That change in GST happened in 1989 so its been 20 years since it was last increased. Not bad really. But lets look at something here. Something that is $15.50 needs to add $1.94 of GST to the price making it $17.44. The same item at $15.50 increasing GST to 15% makes it an additional $2.33 $17.83. Making it an additional 39c. Does not look like much huh...but...add it up...you could easily in your weekly shopping bill be spending another $50 odd on your essentials.
It is hard to save in this environment but we are working on it in our home. But I would like to see exactly what is going to happen before I'm any more positive on what is going to come. It's no point giving me $3 back in income tax if $5 is going towards GST.
The talk recently about increasing levies on smokes and alcohol is maybe on avenue for increasing GST on unhealthy products or things of that nature alone while reducing or cutting GST on basic healthy items like fruits, veges, milk etc. Stack the GST on tobacco and booze.
Mining.
Personally, I've got no issue with mining, but I do if it has a harsh impact on the appearance of our nation. The last thing you want to see in the middle of our national parks is a big gaping hole where an open pit mine is.
I was Google Earthing the other day and came across the ugly pictures around the town of Waihi where the open mines are. Thats not a pretty look. Granted, one of the mining company guys appeared on Breakfast and said some of them would be under ground mines, and I don't have a problem with that as long as they are safe and don't collapse under weight and ruin our mountains. But these are resources that are there to help us. Either domestically or internationally they are there for a reason...to be used.
I hope this process is carefully thought out. Many people stand to lose more than they gain and some gain more than they need.
Labels: GST, Mining, National Party, Tax reform
posted by Wiremu Bayliss at
9:39 am
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