Message from @NewRogernomics
Discord ID: 649103051067752448
Well, on a real basic level, I think the tax system needs work.
as workers share of GDP shrinks, aggregate demand drops
sure, but i woudl say more for the labor savings than any real issue of taxation
The way the US system is set up, tax avoidance is a major issue, and it seems to hurt the poor and middle class.
tax system could stay exactly the same and you could fix latter part just from fiscal policy
And the tax avoidance is kinda built-in, and it isn't a bug and rather a feature.
tax policy is really about how efficiently you want to control inflation AND/OR social engineering goals
You'd have to figure out how to tax higher incomes.
I've heard some floated ideas, like taxing shares,etc, as well as a flat tax.
no real magic to that, the us has had dramatically higher marginal tax rates before, though it doesn't really do wht they want it to because spending habits change less higher up you go
so that would be mostly a social engineering goal
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
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.
The govt recently made some restrictions on foreign property ownership.
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.