Message from @NewRogernomics

Discord ID: 649103894089302027


2019-11-27 04:20:00 UTC  

so that would be mostly a social engineering goal

2019-11-27 04:20:10 UTC  

if you want to control inflation, consumption taxes work better

2019-11-27 04:20:29 UTC  

(and that should be the main goal of tax policy in monetary economy)

2019-11-27 04:21:07 UTC  

I can't say whether it is right or wrong: Though in NZ, it has a high sales tax, coupled with a flat tax system based upon income level, with no exemptions for charities as much as in the US.

2019-11-27 04:21:47 UTC  

My folks kinda feel they are paying more tax here than in NZ.

2019-11-27 04:22:09 UTC  

they might be, us has a very diverse system depending on how you make your money

2019-11-27 04:22:42 UTC  

I don't think NZ has capital gains taxes either

2019-11-27 04:22:58 UTC  

or it's not separate at least

2019-11-27 04:23:09 UTC  

They paid the top tax rate in NZ, which was 33%

2019-11-27 04:23:12 UTC  

in the us it matters how you make your money, not just how mch you make

2019-11-27 04:23:47 UTC  

NZ has no payroll taxes,etc, just a general income tax.

2019-11-27 04:24:05 UTC  

for 'income' here in the us it's 37 marginal above 500k for single

2019-11-27 04:24:10 UTC  

but 21% capital gains

2019-11-27 04:24:19 UTC  

'income' here means labor for the most part

2019-11-27 04:24:28 UTC  

Also families in NZ can receive tax credits, though never really looked into how that works.

2019-11-27 04:25:03 UTC  

short term capital gains is taxed like income(labor) which hits traders like me

2019-11-27 04:25:18 UTC  

yea we have that here too, earned income tax credit and a mess of other line item stuff

2019-11-27 04:26:10 UTC  

0/15/20 capital gains rates here split at 40k and 400k ish

2019-11-27 04:26:54 UTC  

Yep. NZ has no capital gains taxes, though they have been floated.

2019-11-27 04:27:08 UTC  

Mostly to deal with the housing issue.

2019-11-27 04:28:14 UTC  

The govt recently made some restrictions on foreign property ownership.

2019-11-27 04:28:37 UTC  

Which isn't obviously going to fix the problem, and is more of 'we are doing something' message.

2019-11-27 04:29:19 UTC  

it's approaching problem from wrong angle, the asset bubble is caused by the monetary policy, which contributes to pricing out locals

2019-11-27 04:30:20 UTC  

gotta de-leverage and open up the fiscal spigots, get household debt ratio way down, raise gov ratio up

2019-11-27 04:30:48 UTC  

It was pushed in the media as "government bans property sales to foreigners", but ironically it doesn't really do that, as those that buy property in New Zealand usually go through broker agencies whose agents are already citizens or residents.

2019-11-27 04:31:32 UTC  

There are few (if any) actual direct buyers who come straight off a plane, and ask to buy property.

2019-11-27 04:31:39 UTC  

you can see in NZ money supply figures money is being pumped in

2019-11-27 04:31:48 UTC  

but you can see in household debt to gdp ratio where it's NOT going

2019-11-27 04:32:10 UTC  

Well, NZ is relying on immigration unfortunately.

2019-11-27 04:32:30 UTC  

Also you can get into NZ through an investor residency system.

2019-11-27 04:32:55 UTC  

Meaning if you buy property/invest in companies, you can get in as a long-term resident.

2019-11-27 04:34:20 UTC  

If you visit NZ, the locals aren't doing as well as recent immigrants who come in with assets in hand, and buy up property.

2019-11-27 04:34:25 UTC  
2019-11-27 04:35:01 UTC  

Auckland (the major city) is full of wealthy Chinese, who got in on the residency visa.

2019-11-27 04:35:27 UTC  

yea i know, i listen to martin north and those guys all the time

2019-11-27 04:37:01 UTC  

The general feeling of folks that live there is that NZ is great for those that come in with money and skills, but sucks for those who were born in bred there or for migrants from the islands.

2019-11-27 04:37:20 UTC  

yea it's a takeover

2019-11-27 04:37:32 UTC  

the chinese understand all this, it's part of their state policy

2019-11-27 04:37:32 UTC  

NZ has the problem as well that it has a low population that can only support so many jobs in certain sectors.

2019-11-27 04:37:57 UTC  

it's a purposeful takeover, they probably finance much of the austerity politics there