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0% tax band, should we do it?

0% tax band, should we do it?

Old Mar 21st 2012, 3:18 am
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Default 0% tax band, should we do it?

I notice in the UK the threshold for tax payment is rising to £9,205 up from £6,475 in early 2011 which will be good for the young people and part timers. Here of course the lowest rate is 10.5% + ACC levy to $14000 so there isn't really a zero rate.

The thing is though it's all so good and easy being against taxes but where would you pull the money to plug the gap from? Should we rid ourselves of it or keep it to reduce the deficit?
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Old Mar 21st 2012, 4:14 am
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Default Re: 0% tax band, should we do it?

I think we are one of the highest taxed countries in the world, directly and indirectly.

What worries me, reading the recent Sunday Star Times and how many councils are in debt and the what amount! And lets be honest here we hardly get the services we used to (UK I mean) for our rates here. (or is that just me?)
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Old Mar 21st 2012, 6:56 am
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Default Re: 0% tax band, should we do it?

Originally Posted by sparkie down under View Post
I think we are one of the highest taxed countries in the world, directly and indirectly.

What worries me, reading the recent Sunday Star Times and how many councils are in debt and the what amount! And lets be honest here we hardly get the services we used to (UK I mean) for our rates here. (or is that just me?)
We are quite low tax really:
http://en.wikipedia.org/wiki/List_of...centage_of_GDP
You have to figure that taking deficits into account (they are just opting to pay more tax later) we have the same tax rate as the U.S. and lower than the UK.

External debt is a problem:
...''debt still an ugly word'', New Zealand's high level of external debt - equal to almost 72 per cent of GDP - was a reminder of the country's vulnerability and the need to lift nationwide savings, ANZ said.
The UK seems to have external debt at 500% of GDP and the U.S. 97% of GDP.
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Old Mar 21st 2012, 6:58 am
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Default Re: 0% tax band, should we do it?

Originally Posted by sparkie down under View Post
I think we are one of the highest taxed countries in the world, directly and indirectly.

What worries me, reading the recent Sunday Star Times and how many councils are in debt and the what amount! And lets be honest here we hardly get the services we used to (UK I mean) for our rates here. (or is that just me?)
AND heard on the financials tonight that Nz is heading into choppy fiscal seas. What with debt, commodity prices appearing to be on the wane and the kiwi $ is likely to flag in the coming weeks/months apparently. Great for exporters, not so good for importation......you watch petrol go up!
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Old Mar 21st 2012, 6:59 am
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Default Re: 0% tax band, should we do it?

Originally Posted by Charismatic View Post
We are quite low tax really:
http://en.wikipedia.org/wiki/List_of...centage_of_GDP
You have to figure that taking deficits into account (they are just opting to pay more tax later) we have the same tax rate as the U.S. and lower than the UK.

External debt is a problem:


The UK seems to have external debt at 500% of GDP and the U.S. 97% of GDP.
But the UK has just posted good news re inflation..so its not all bad!!!!!!!!!
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Old Mar 21st 2012, 7:06 am
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Default Re: 0% tax band, should we do it?

Originally Posted by Genesis View Post
AND heard on the financials tonight that Nz is heading into choppy fiscal seas. What with debt, commodity prices appearing to be on the wane and the kiwi $ is likely to flag in the coming weeks/months apparently. Great for exporters, not so good for importation......you watch petrol go up!
That's not what they were saying on Breakfast news this morning - the only way is up apparently: "Despite today's falls, a market analyst told TV ONE's Breakfast the kiwi should keep gaining against the greenback in the next three years, regardless of the US economy's signs of recovery."
http://tvnz.co.nz/business-news/nz-d...dicted-4788117

Crystal ball anyone?
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Old Mar 21st 2012, 9:47 am
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Default Re: 0% tax band, should we do it?

Don't forget the British "National Insurance" con when doing the sums. But the answer to the original question is "Yes, of course".
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Old Mar 21st 2012, 6:46 pm
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Default Re: 0% tax band, should we do it?

NI is bugger all when compared to your ACC levy! I just happen to work in one of the most dangerous industries, (according to ACC) have a farmlet and ride a motorbike. I'll swap you ACC bills any day. Give me NI any day, Wasn't it 2 or 4 % plus employers 4%?

Last edited by sparkie down under; Mar 21st 2012 at 6:47 pm. Reason: missed stuff out
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Old Mar 21st 2012, 9:18 pm
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Default Re: 0% tax band, should we do it?

Originally Posted by sparkie down under View Post
NI is bugger all when compared to your ACC levy! I just happen to work in one of the most dangerous industries, (according to ACC) have a farmlet and ride a motorbike. I'll swap you ACC bills any day. Give me NI any day, Wasn't it 2 or 4 % plus employers 4%?
Tri 11% employee and 12% employer!
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Old Mar 22nd 2012, 5:21 am
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Wink Re: 0% tax band, should we do it?

No ACC levy on DIY though, maybe Mitre 10 and Bunnings should be forced to add a levy whenever selling power tools?
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Old Mar 22nd 2012, 5:32 am
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Default Re: 0% tax band, should we do it?

Originally Posted by RJT UK View Post
Tri 11% employee and 12% employer!
Is that right? It must have gone up since I left - don't remember ever paying that much in NI.

Mind you I did have a very good accountant - With good behaviour he should be out about now
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Old Mar 22nd 2012, 7:45 am
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Default Re: 0% tax band, should we do it?

Yes, those NICs are about right. I think employers might up up to 13% now.

In the UK you also have high public/employer's liability and motor insurance costs, in part to offset the lack of ACC

Even then you'll have to prove that someone caused your accident, otherwise you get nought - apart from benefits of around £67 (yes, sixty seven) a week
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Old Mar 23rd 2012, 5:21 am
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Default Re: 0% tax band, should we do it?

The answer to the original question is obvious.....

Capital Gains Tax
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Old Mar 23rd 2012, 10:46 am
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Default Re: 0% tax band, should we do it?

Originally Posted by NakiMan View Post
The answer to the original question is obvious.....

Capital Gains Tax
Aye, agree there.

UK NI rates have been around/above 10% for ages.

Can't say I'm a big fan of ACC, mightly inefficient and costly, seems to be part of the reason car insurance ain't compulsary here.
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Old Mar 23rd 2012, 12:37 pm
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Default Re: 0% tax band, should we do it?

Originally Posted by chocolate cake View Post
Aye, agree there.

UK NI rates have been around/above 10% for ages.

Can't say I'm a big fan of ACC, mightly inefficient and costly, seems to be part of the reason car insurance ain't compulsary here.
I can see both points of view on that, but ultimately I end up thinking: it isn't the govt's place to force people to enter into contracts with private companies. And that's what compulsory motor insurance means in the UK.
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