Loomio

Major Tax Reform

JK Jessy Kodi Public Seen by 171

Yearly income tax
0-15k 0% tax
15k-25k 10% tax
25k-35k 15% tax
35k-45k 17% tax
45k-55k 20% tax
55k-70k 25% tax
70k-85k 30% tax
85k-100k 35% tax
100k-130k 40% tax
130k-150k 45% tax
150k-200k 50% tax
200k-400k 55% tax
400k+ 60% tax

JG

John G Tue 2 Sep 2014 7:33AM

Get rid of GST first.

QJ

Quentin Jackson Tue 2 Sep 2014 7:37AM

I don't see how doing this would encourage innovation. We need to think 'beyond' tax to achieve what I assume you are trying to achieve here.

But before we do that, we have to recognise there are some things that just are, and there are oh so many variables, it just can't be as simple as what you write.

Such as skilled or motivated workers will generally get more pay.
Lower income bracket will contain a high portion of low motivated people
Taxing the higher income bracket too much will make them leave and go overseas and that will likely reduce jobs for everyone as it will stifle innovation or open up for big corporations - if they could even be bothered trying with high tax.
High tax will probably make corporatoins find ways to avoid it more so that less of it ends up in NZ

Some of these are contentious I know. There are too many variables - I think there would be better ideas such as mandating sponsorship / apprenticeship of workers or unskilled per percentage of profit or similar.

AH

Ahmad Hammadeh Tue 2 Sep 2014 7:38AM

Why would you punish people for making more money, this is why the wealthy leave nz.

JK

Jessy Kodi Tue 2 Sep 2014 7:39AM

Remove gst on kiwi made products but increase imported.

MP

MASINA POIHGEGATAMA Tue 2 Sep 2014 7:41AM

I'd cap it at 28%. I don't make a lot of money but I do agree with Ahmad, we shouldn't punish people for making more money.

JK

Jessy Kodi Tue 2 Sep 2014 7:42AM

This "punishing innovation" argument is not valid as there still making more then the rest and the incentives are still there.

JG

John G Tue 2 Sep 2014 7:45AM

Taxation doesn't pay for anything. It merely removes government money from the system.

QJ

Quentin Jackson Tue 2 Sep 2014 7:54AM

Sorry this just doesn't make sense to me.

JG

John G Tue 2 Sep 2014 8:00AM

The NZ government is the sole issuer of NZ$.

The government spends NZ$ into existence and it destroys them by taxing them out of existence.

The government can not have NZ$ or not have NZ$. It creates them by marking up numbers in bank accounts in the private sector.

JK

Jessy Kodi Tue 2 Sep 2014 8:01AM

Let's give an example of innovation still current with this reform. Mark earns 50k per year hes taxed 20% ending up with 40k. Tom earns 140k per year hes taxed 40% ending up with 84k. That's double the money. It's not punishing the rich its closing the gap. At current its the poor being punished. Why should someone earning 45k pay same % as someone earning 200k..

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