How the wealthy dodge tax

I agree higher income earners need a break. I aslo agree those that can't help themselves need a step up - but lower income/middle income earners that don't help themselves, take free rides where they aren't due, and complain about how hard done by they are, are the bain of NZ's society. I'm surprised by the govt thinking higher income earners spend more and will shoulder the burden of higher GST - most higher income earners I know (the ones that aren't in the news holidaying in Hawaii) are quite frugal. its the "poor me's" who buy everything on credit cos their friends have got one, will be worse off and will be more of a burden on society with their increasing bad debts. At the end of the day - did we expect the tax package to solve all our problems? No. So whats the point?

Big_ry #113 - thank you. just to expand further on that in the real world, I'm expecting my tax bill to drop to about $27k per year.

I know an average elderly couple on the pension get around $500 per week, so my taxes will still support 2 people. Not only that, but I'm supporting my missus as well while she studies which not only reduces the cost to the state in terms of student allowances ($7-8k per year?), but frees up another job for someone.

So I'm supporting 3 people as well as trying to pay my mortgage and actually have some sort of life. Anyone still want to try and say I don't pay enough?

Let sanity prevail - the people expecting other to provide for the needs to wake up. This is a democratic society driven by capitalist values. Unfortunately we are also on the side creating a bunch of entitlists - society does not owe you anything.

It is either fix this or the Oz calculation will stay positive.

If they really want to help the less fortunate - lower or remove tax on essential food items i.e. fresh meat, vegetables, milk and cheese. And if any fool want's to tell me it is to difficult - it is done aroundt he world - we are not that patetic!

Bring on the tax relief John.

@ Big_ry... Hahaha - another rant from you, that means nothing, because yet again you tell people things about themselves when you really don't know anything.

By all means express your opinion, but you lower your intellect and take any meaning away from anything you say the minute you start speaking about people you don't know, like it is truth! Really pathetic!

And stop telling people to leave NZ - who do you think you are?

I notice you haven't gone back and apologised for your MOST incorrect comment in regards to a misunderstanding. *rolls eyes*

Act like an educated person, since you claim to be one.

realistic #84 I’m not sure there are many truly poor people in this country, there is an extensive welfare system. Many of the poor are poor in attitude only and it’s their fault (and partly their parents fault) that they didn’t educate themselves better. You have to have incentives for people to work better , so having higher income tax rates for higher earners is self-defeating. Andy#48 has it right, people earning $100k are supporting this country, we are the ones who worked hard to build a career, and the ones who are sick of much of our taxes being handed out willy nilly to undeserving causes. I’m all for the very low income people to pay no income tax at all, but let’s have standard rate that applies to all after that.

I agree with one writer earler, with the exception of needing to be educated perhaps through one of our government funded (tax benefited) institutions. I am self educated, didn't sit school cert, but over the years read books of interest, autobiographies, etc. I started in a basic job and worked hard, turned up to work on time with the right attitude. I progressed from a low wage to earn currently in excess of 200k per annum. You think I'm rich because I'm on 200k+. This is simply ignorance on the part of people on low to middle incomes who make up the tall popy knockers in this country. I pay far too much tax and have done now for years. Over the last decade I would have paid more tax than the average person will earn (gross) in 20 years. I still have a high mortgage, still have kids to put through college, still have bills like everyone, and still contribute more taxes than most. Even after the tax cuts I will continue to contribute more than most. The attitide of the poor and middle class who are simply jealous of people earning more than them is frankly pathetic and I say get a life.

A recuring theme here is what is fair? Is it fair that my taxes are used to pay for the choices others make? i.e. to pay for their choice to have children. I think not. Is it fair that our tax obiligations are close to 50% of our income? I think not, and that is a core reason for people lessening their obligation towards 35% within the rules. Is it fair that our government's double dip on taxation? It's unethical. Is it fair 'the focus for tax is predominately on PAYE rather than a broader treatment of collection vehicles? I think not. it's punitive.

This guy hit the nail right on the head!

Andy #48 Quick figures off the top of my head, but someone earning $40k pays about $8,000 in taxes. Someone earning around $100k (like myself) pays $30,000 in taxes.

So given the fact I pay almost 4 times as much taxes as your average earner, I have private health insurance so don't drain anything there, will also be in a position to fund my own retirement (hopefully!), and don't hide anything in a trust or company, why should I not get my taxes reduced?

I pay more in taxes in a year than a lot of people earn as their gross income! Don't tell my I'm ripping off the system or the country and don't deserve to get some of my contribution reduced. I'm all for a welfare state and more than happy to support those less fortunate than me that can't work etc, but I certainly take issue with the fools that didn't bother to take advantage of school and will probably not progress much beyond packing my groceries for me having a whinge about how I'm somehow depriving them.

You had the same chance as me to get an education and choose not to, I contribute more to the economy than you take out of it, so stop your bloody incessant whinging. If you want to see about deprivation then I suggest you head to the middle of Africa and see what economic slavery and oppression is really all about.

@ rosebomb #82.

i don't know which, or if any countries already have incentives in place. i'm just basing this on personal experience as two family members are teachers and their low pay and low maximum means I would never want to choose that career. but i get your point that i have no proof that it will work.

why do we want to pay less tax? so we can afford to have children.

@ AS #89

perhaps anyone who is a director / has shares in a company is not entitled to any family assistance etc.

i know many people who have abused government assistance by taking the dpb while they were in a relationship but on the flip side i know many single parents who have relied on it and struggled bringing up their children as their exes have not paid child support. i think it would be very difficult to regulate but the policy does need to fixed with tighter regulations.

So this tax dodge is being 'fixed' by reducing the 39% rate to 33%. That just saves the rich the bother of trying to avoid higher tax. Is this a slap on the wrists for them or a pat on the back? Well done National, at least I know that the extra cost of my fruit and veges is paying for a good lifestyle.