So 15% of free is still free.. 

kiwigeek1:

 

its just more tax that affects the lower income people

 

 sure tax is fine but maybe they need to make sure the livable wage is met.. like $19/hour or that expert

 

stating $25/hour is what all need to be stating on (Nigel L. show on tv recently)

 

The thing about GST is it works because it's applied to everything.  There are frequent calls to have exemptions for this and that, but exemptions just allow space for questionable interpretations.

A negative of GST is it applies to more of your income when you are on low income because you have to spend most of what you earn.  But the solution to that is to increase people's incomes.

Higher wages seems inherently more efficient as a mechanism of income transfer than taxation.  The question I always have is will it work.  Or will it simply cause inflation and no-one will be better off?

MikeAqua:

 

kiwigeek1:

 

its just more tax that affects the lower income people

 

 sure tax is fine but maybe they need to make sure the livable wage is met.. like $19/hour or that expert

 

stating $25/hour is what all need to be stating on (Nigel L. show on tv recently)

 

 

The thing about GST is it works because it's applied to everything.  There are frequent calls to have exemptions for this and that, but exemptions just allow space for questionable interpretations.

 

A negative of GST is it applies to more of your income when you are on low income because you have to spend most of what you earn.  But the solution to that is to increase people's incomes.

 

Higher wages seems inherently more efficient as a mechanism of income transfer than taxation.  The question I always have is will it work.  Or will it simply cause inflation and no-one will be better off?

 

For me, GST and similar taxes like VAT in the UK fail a logic test. Why should you pay tax to spend money on which you paid tax?

As a business owner, it also fails a fairness test because it requires businesses to carry out unpaid tax collection and accounting on behalf of the government. I have always felt that businesses should be entitled to deduct some part of GST/VAT etc to represent pay from the government towards the cost of carrying out their tax collection duties for them.

Geektastic:

 

For me, GST and similar taxes like VAT in the UK fail a logic test. Why should you pay tax to spend money on which you paid tax?

 

Are you including sales tax and petrol tax and road user charges in "similar taxes"? What about rates? ACC? Kiwisaver? Customs? Speeding fines? They're all just different ways for the Govt to collect money.

 

As a business owner, it also fails a fairness test because it requires businesses to carry out unpaid tax collection and accounting on behalf of the government. I have always felt that businesses should be entitled to deduct some part of GST/VAT etc to represent pay from the government towards the cost of carrying out their tax collection duties for them.

 

The precedent has been established long ago for PAYE tax collection by employers.