NZ

Taxed to the max in NZ

New Zealand has an overwhelmingly onerous, highly regressive, taxation compliance regime to which we must conform under the Sauron-like gaze of the IRD, or get flogged with fees and penalties.

We pay more tax than anyone else, and unlike other nations every dollar of our earnings is taxed.  Even our children are taxed.

Now, our government intends to slap a Capital Gains Tax on us.  Cullen, head of the Tax Working Group, said “it’s to bring us in line with the other nations.” 

“It’s all about fairness” the proponents of this tax proclaim as they seek to apply it not just to speculators flipping Auckland houses, but to farmers and small business owners!  I know its not going to be fair, its already corrupt and unjust.

Here is my experience of the NZ Government as a small business owner.  We set up in 2007, in our early forties.  It was quite the mid-life crisis.  We didn’t get any help from the government.  In fact, they were a stumbling block.  Our capital was a measly $48 but we secured a private loan of $10,000 which we paid back in three years.

The first year, we couldn’t take drawings so worked at night.  I worked three part time jobs, my husband two.  We cleaned  workplaces, did night-fill at a Supermarket, and I looked after a group of handicapped people on the weekend.  Our tax was 28% because of the “secondary” jobs.  If we’d been in Australia we would have paid no tax.

We went along fine for two years, and made a small profit of $34,000 before drawings, which triggered Provisional Tax.  This tax is brutal for small business and the reason most of them fail in the first five years. It’s like a bar to entering business.

Under Provisional Tax, NZ Businesses have to pay two years worth of tax, being tax for the previous year and tax on money for the current year that hasn’t been earned yet.  We didn’t have enough put away, not knowing how much we were going to be charged.

We had to pay nearly 25% of that profit in tax.  IRD said we could pay the first year’s tax off in installments, with penalties, but had to pay the entire amount on the second year.  It was a serious setback, and we would have been out of business if we hadn’t had access to revolving credit.

For the next three years, we were unable to replace the twenty year old car or grow our business, because of the amount taken off our profit.

The business is now twelve years old.  It hasn’t made us rich but it does provide a living and we’re our own boss.  We haven’t been able to participate in the Auckland housing market but hoped the business would be a nest egg for our retirement.  If the CGT goes through the leech-like NZ government will seek to take 33% of the money from our small business.

My husband and business partner considers the NZ government and its enforcer IRD to be like blood-sucking Queensland cattle ticks.

My tale will be typical of small business and the middle class in New Zealand.

We are a nation of entrepreneurs.  Small businesses generate 28% of New Zealand’s GDP and employ over 600,000 people.  You’d think we’d be encouraged and helped every step of the way but we’re not.

Given the risks we take and the hurdles we have to overcome to get our business running, its demoralising to think that at the end of it the government will take a third of our nest egg, on top of all the other tax we pay in the business; Provisional Tax, PAYE, 15% GST, the ever-widening FBT, ACC, Fuel Tax, and GST on Fuel Tax.

Cullen and the Tax Working Group appear to be completely out of touch with NZ Small Business.  If Jacinda follows the Tax Committee’s advice she will only be in for one term.  In the meantime, how much damage will they do?


There are two tax regimes, one is hidden.  It turns out NZ is a well-known tax haven.
Just like Vancouver and other places where foreigners have speculated, we’ve now got an unaffordable property market.  Guess what the overseas tax lawyers invested their client’s un-taxed money in?  I found out how it happened and will deal with that in a separate post.

Finally, Jacinda is a socialist.  Here she is in action ten years ago as Comrade Jacinda Ardern. Should we trust her given what we’re seeing here?


Links

Cartoons about the proposed capital gains tax

Andrew Dickens: Supporters of a capital gains tax should be angry

Freedom of religion attacked in NZ

Dave Rubin of The Rubin Report used to be a big progressive, but he has left the left.  Although a gay, he does not believe in people of faith being coerced to provide a service that goes against their religion.

“If a baker won’t bake you a cake, find another baker!” he said, adding;

“A government that can force Christians to violate their conscience can violate anyone.”

He speaks on religious freedom at the two minute mark.

Recently, this issue erupted in my own community, when a lesbian couple from overseas complained about a local cake baker who politely turned them down when asked to bake them a wedding cake, saying it was against her beliefs.

Lesbian couple ‘shocked’ by Kiwi baker who refused to make wedding cake.

I’ll leave you to imagine the names she got called by all the “social justice” trolls.

Kath’s Story (The Warkworth Baker)

The argument was made that the baker shouldn’t have been in business if she was going to be discriminatory.  But if she was in business before same-sex marriage became law, was she expected to give up her career, shut up shop and go out of business, just in case she might offend someone?

When same sex marriage was foisted on NZ in by the politicians in 2013, the Select Committee stated: ‘It is our intention that the passage of this bill should not impact negatively upon people’s religious freedoms… The bill seeks to extend the legal right to marry to same-sex couples; it does not seek to interfere with people’s religious freedoms.’

Yeah right.  Same sex marriage has impacted negatively on religious freedom in New Zealand.  They lied and this law should have never have been passed without a referendum.

What do you call a government that legislates morality and forces people to violate their religious beliefs?


Links

Gay Marriage Exemption ‘Unprincipled’, ‘Discriminatory’ – Legal Opinion

 

NZ Monopoly

MonopolyWe’ve been sitting down playing the latest game of Monopoly these holidays.  The board is an ominous black colour, there’s no cash and it’s ruthless!  At least you get round the board quickly.  Even my husband joined in.  He normally refuses to play, calling the standard game “Monotony.”

Anyway, it got me thinking about the game.

How would you feel if we sat down for a game and I was the banker who could generate more Monopoly money whenever I needed to?  I had the most expensive streets.  Your cheap properties would end up mortgaged, and every time you made it around Go, you’d only get about half of your Go money because a portion would be electronically deducted to me via income tax and GST – even before you landed on the tax squares.

That’s what the system is like in every country in the world that has a reserve bank and a system modeled on the Bank of England.

Uninsured picIn the New Zealand version of our rigged game of Monopoly, if I as the Banker did get into trouble, I would take your money to keep myself in the game.  It’s called the “Open Bank Resolution.”  New Zealand is the only OECD country without deposit insurance.

To add insult to injury the banker is foreign.  The “big four” banks in NZ are all Australian – even the BNZ, which was sold to Australia in 1992 after the NZ tax payer bailed it out in 1990.

Do you want to play?  The NZ version of Monopoly is probably the worst – but we’re all playing unless you’re in North Korea, the only country left without a reserve bank.  Interestingly, the other hold outs – Iraq, Afghanistan and Libya have had central banks imposed after being invaded.

Guess How Many Nations In The World Do Not Have A Central Bank?

Money creation, Fractional Reserve Banking

While the NZ Reserve Bank controls the issue of currency, most of the money is now generated electronically – essentially created out of nothing by the Australian banks.  We think the banks are loaning from depositor’s funds, but they’re not.

“As the Bank of England has now confirmed, banks create the money they lend out of nothing and can charge interest on the new money for as long as it exists in the form of a debt owed to them.” Source:  Banks fuel housing market by ‘creating’ money.

john-maynard-keynes

 

money_out_of_thin_air

What can we do?

How Monopoly ends

We could educate ourselves about money.

We could ask our governments for a change to the money system. Ask why we aren’t creating the money electronically and charging the banks for it?

Don’t do business with the foreign owned banks.

Join an international movement for money reform.  http://internationalmoneyreform.org/


Links

The New Zealand housing affordability crisis will go on getting worse. In other words, and at the risk of accusations of xenophobia, it is not so much Chinese buyers, as Australian-owned banks, that are responsible for New Zealand’s housing crisis. Source: Banks fuel housing market by ‘creating’ money.

NZ Open bank Resolution: ‘A flawed system to protect savers’

“On the bank’s website, BNZ invites customers to “check out how we’ve been part of New Zealand’s history”, with a timeline running from 1860 to the present day.  It contains many high-points, but fails to mention either of the two times the bank required government bail-outs in order to continue trading.”  Source: BNZ ‘inadvertently’ rewrites history by omitting bailouts.


Has NZ been left with a financial T-Rex?

New Zealand’s Prime Minister John Key has resigned.  I’m surprised at the timing – just after the Kaikoura earthquakes, and on the same day that Italy’s prime minister resigned.

It reminds me of that scene in Jurassic Park where the kids got left with T-Rex.  But let’s hold that uneasy thought for the time being.

he-left-us

Key should have resigned like he promised when it was proven that the GCSB is carrying out mass surveillance of us New Zealanders.  But when the Snowden revelations did indeed show that in 2015, nothing happened.  At least he would have had some credibility if he’d kept his word.

But he hasn’t kept his word.

For instance, he wasn’t going to raise the GST tax.   John Key’s changing opinion on GST rise.

On gay marriage – before his government passed it into law in 2013, he previously said “he did not believe there was a big demand for gay marriage in NZ and that civil unions were enough.”

Has John Key left big shoes to fill?  No, those big shoes look more like flip flops.

John Key flip flops like a girl changes clothes

His comments were flip and his neo-liberal financial leadership was a flop.

flip-flops2

So what has John Key done in the three terms he’s been in?

He raised GST to 15%, turned NZ into a tax haven for the one percent, sold NZ land to overseas investors thereby pricing our children out of the domestic housing market, signed NZ up to the TPP, sold state houses – which forced vulnerable NZ families into living in cars, and under his watch New Zealand’s gross debt has soared to a whopping half trillion dollars.

That’s what we know he’s done.  So what’s happening behind the scenes that we don’t know about?

How about New Zealand’s exposure to derivatives? 

Former Canterbury University accountancy lecturer Dr Susan Newberry, now professor of accounting at Sydney University’s business school, still keeps a fascinated eye on the “New Zealand experiment”. And some of what she sees she finds a little alarming.

Does the average Kiwi know the country’s balance sheet now has a derivatives exposure of $180b, she asks? That is rather a lot of those “financial weapons of mass destruction”.

It means the NZ tax-payer is on the hook if it all goes wrong and there is the international equivalent of a bank-imposed mortgagee sale. (Think Greece, Iceland and Ireland.)

But hey, what could go wrong?  It’s like 2008 never happened!

John Key was directly involved in the development of derivatives – the financial contracts and credit default swaps that no-one understands, which led to the toxic sub-prime housing loans, which led to the Global Financial Crisis. The likes of Merrill Lynch and the Bankers Trust profited from foreign exchange trades and derivatives speculation at the expense of national economies.

In transforming NZ into a tax haven and creating the speculative housing bubble, he’s done the same thing to NZ that he did to Ireland, when as head of global foreign exchange for investment giant Merrill Lynch he shifted a considerable amount of his business to Ireland in the mid-1990s to take advantage of a 10% tax rate for foreign investors.

Fran O’Sullivan: Key chases luck o’ the Irish

That’s what you get when you elect a banker for Prime Minister.  He’s done really well for the one percent.

Meanwhile, have we in NZ been left with a financial T-Rex?

derivatives

Other links:
The great big list of John Key’s big fat lies

Another Very Short Collection of John Key’s Lies

Trading Places: Running NZ like an investment fund

Don’t let the door hit your arse on your way out Johnny

Why our state housing stock is being sold off while thousands of Kiwis are homeless

Rangitikei Environmental Health Watch

The Prime Minister John Key announced earlier this year that he intended to sell off  1000 to 2000 of NZ’s state houses. Large numbers of these homes were built by the first Labour government in 1935 and as of 2013 the stock numbered 69,000. That era had marked the birth of our welfare state and the tenants of the first house that was finished and let in 1937, paid just one third of their income in rent. Fifty years later we had the Labour government promising to remain involved in NZ’s housing market, then with the event of  Rogernomics and Roger Douglas’s neo liberal economic policies (the new economic ‘experiment’ that benefited those at the top of the capitalist pyramid and launched the ever increasing gap between rich and poor) rents were raised to market rates. Tenants could then apply for a government subsidy called an accommodation benefit,  effectively subsidizing…

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Parents persecuted in NZ

RespectThe PC brigade strikes again.  In New Zealand, we can no longer discipline our kids in public.

A father took his three children aged nine, seven and five to visit their mother in hospital. He didn’t have to be there as he and the mother were no longer together.  That act of caring brought him an assault charge.

His name is Michael Laws, former Wanganui Mayor. His crime? He smacked one of his children in front of a nurse, who then complained to the police.
“Laws accused over child assault” blares the shrill headline from NZ Yahoo news.

http://nz.news.yahoo.com/a/-/top-stories/20860555/laws-accused-over-child-assault/

Now this father stands accused, and the police are having to investigate a child assault complaint, when their time could be better spent elsewhere.  There are heaps of burglaries to investigate from NZ’s P epidemic.

I have been in that same hospital with my child, where I allowed them to jab her with a needle – and it made her cry. What I did was preventative act of caring, necessary for me to do as a parent.  How come jabbing my daughter with a needle so she wouldn’t catch whooping cough or diptheria is not termethey-had-no-rightd an assault, when giving a quick smack to a child has stepped over the line is!

It’s sad that NZ has been turned into a small-minded nanny state where parents are under threat. 

This man was a well known person in Wanganui and a good father.  Where was the nurse’s common sense?  He’s a Dad left bringing up his children on his own in a land of missing fathers and he didn’t deserve this nonsense.  He was visiting his estranged partner and didn’t even have to be there.  His actions were those of a caring parent, not a bad one!

Why did Yahoo news make that nefarious accusation into a headline? You have to get to the second paragraph before you realise what he is guilty of – a smack!  What kind of Orwellian newspeak are they peddling?  I don’t want my opinion shaped, or have to read to paragraph two to get at the truth.

associate_prof_joan_durrant

NZ, first country to enact a ban (on smacking) following the publication of the UN Study on “violence against children”

How did we come to this  in NZ?  This putrid piece of PC excrement, disguised as a law, was passed in 2007 to criminalise parents who smack?  It came in under the government of Helen Clark, after a UN publication on violence against children.  Helen Clark has been amply rewarded – she is now third in power at the UN.

smacking referendumIt was brought in despite public petitions and protests, and without a referendum.  It was finally put to public referendum under John Key’s government in 2009, where it was asked “Should a smack as part of good parental correction be a criminal offence in New Zealand?”  A whopping 87.4% of NZ answered ‘no’.  Nothing happened.  Why not, and why haven’t we been listened to?

John KeyJohn Key’s assurances are in direct conflict with what groups like Barnados, the Children’s Commissioner and Plunket are telling parents, and the way the anti-smacking law is being enforced by the police, CYF and the Family Court. And in September 2010 in Parliament, all political parties, except for ACT, sent a clear message that a light smack is not ok when they rejected the very amendment that National MP’s had been vigorously lobbying for when in opposition! Law-abiding parents raising great kids are now confused.

Now, in 2020

Things have got a lot worse for parents since this UN-mandated law was enacted.  We’ve got big government in a small country and this is what it looks like.  If you’re a parent under stress, be careful reaching out to Plunket.  They’re no longer to be trusted and will get the state involved.

This website has some good information for parents, with links to lawyers and legal advice: https://protectgoodparents.org.nz