Message from @NewRogernomics
Discord ID: 649104171810684940
if you want to control inflation, consumption taxes work better
(and that should be the main goal of tax policy in monetary economy)
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.
My folks kinda feel they are paying more tax here than in NZ.
they might be, us has a very diverse system depending on how you make your money
I don't think NZ has capital gains taxes either
or it's not separate at least
They paid the top tax rate in NZ, which was 33%
in the us it matters how you make your money, not just how mch you make
NZ has no payroll taxes,etc, just a general income tax.
for 'income' here in the us it's 37 marginal above 500k for single
but 21% capital gains
'income' here means labor for the most part
Also families in NZ can receive tax credits, though never really looked into how that works.
short term capital gains is taxed like income(labor) which hits traders like me
yea we have that here too, earned income tax credit and a mess of other line item stuff
0/15/20 capital gains rates here split at 40k and 400k ish
Yep. NZ has no capital gains taxes, though they have been floated.
Mostly to deal with the housing issue.
Which isn't obviously going to fix the problem, and is more of 'we are doing something' message.
it's approaching problem from wrong angle, the asset bubble is caused by the monetary policy, which contributes to pricing out locals
gotta de-leverage and open up the fiscal spigots, get household debt ratio way down, raise gov ratio up
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.
There are few (if any) actual direct buyers who come straight off a plane, and ask to buy property.
you can see in NZ money supply figures money is being pumped in
but you can see in household debt to gdp ratio where it's NOT going
Well, NZ is relying on immigration unfortunately.
Also you can get into NZ through an investor residency system.
Meaning if you buy property/invest in companies, you can get in as a long-term resident.
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.
Auckland (the major city) is full of wealthy Chinese, who got in on the residency visa.
yea i know, i listen to martin north and those guys all the time
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.
yea it's a takeover
the chinese understand all this, it's part of their state policy
NZ has the problem as well that it has a low population that can only support so many jobs in certain sectors.
it's a purposeful takeover, they probably finance much of the austerity politics there
Well, NZ is basically equal opportunity, in that it takes investment from anywhere without seriously looking into the implications.