Quick rant thread.

[Olaf 3314]

On 3/10/2019 at 10:28 AM, gjm said:

As for tax breaks - that's typically a National carrot, not a Labour one. They trot it out at most elections.

The point of difference is that this is a (high) tax-payer funded tax break, a disingenuous Robin Hood-esque redistribution of wealth, regardless of which party has touted it.  

Can somone explain to me what the economic benefit from this particular lolly will be, if it's thrown through the air?  $500 will easily be soaked up in fuel, or energy, or staple food inflation; fuel of course being a very efficient generator of tax revenue.  The $500 tax break wont benefit small business owners, or improve GDP.  It'll win votes, though.  Sounds like a lot, $10/week...

Edited March 12, 2019 by Olaf
grammar, spelling

[Driftit 2078]

19 hours ago, Olaf said:

When are you due back, Dan?  returning to godzone takes a certain amout of cultural recalibration time, though it has its rewards...

 

Before June this year at this stage.

Not going back to Auckland though.  Had enough of it.
Will be the Wairarapa for a bit.

Prob build a huge shed somewhere like what Chris has.

[gjm 3258]

4 hours ago, _ethrty-Andy_ said:

i guess you hadnt arrived here in the 80s, when there were the biggest cuts in NZ, under a Labour govt.

It's true... We arrived 6, maybe 7 years ago. Get our citizenship next month.
I saw National offfering two tax cuts at the first election we were here, at a time when labour was saying the country couldn't afford them. The first tax cut went through, but the second didn't - National subsequently agreed it was unaffordable.
The last election I felt national didn't actually have a manifesto, and trotted out some words when it became apparent Labour were doing better than expected, including the offer of a tax break. I said at the time that I felt National didn't want to win the election, and still wonder if that were the case. There were several things happening which were - and are - going to be difficult to deal with.

3 hours ago, Olaf said:

The point of difference is that this is a (high) tax-payer funded tax break, a disingenuous Robin Hood-esque redistribution of wealth, regardless of which party has touted it.  

Can somone explain to me what the economic benefit from this particular lolly will be, if it's thrown through the air?  $500 will easily be soaked up in fuel, or energy, or staple food inflation; fuel of course being a very efficient generator of tax revenue.  The $500 tax break wont benefit small business owners, or improve GDP.  It'll win votes, though.  Sounds like a lot, $10/week...

CGT is paid on profit from gains realised through little or no effort. 33000 houses were empty in Auckland alone in 2017; these are typically owned by investors who bought them with a view to sitting on them, selling them in a couple of years, and gathering a 20%+ profit. (Whether they do get that sort of profit is another matter.) Effort - zero. Other than having the money to begin with, and there are people who do this for a 'living'. Applying CGT to these gains (to me) makes sense.
Applying CGT to Kiwisaver, small business gains and so on is a different matter.

Scrap the brightline bullshit (which, let's face it, is only a short-term CGT by another name) and do the job properly. It's sad that reying on a government to do someting properly isn't a rewarding passtime.

 

[lord_jagganath 421]

1 hour ago, gjm said:

 relying on a government to do something properly isn't a rewarding passtime.

unless you are a masochist. 

[Gabe79 410]

30 minutes ago, lord_jagganath said:

unless you are a masochist. 

On a bmw forum I feel it's a bit weird to suggest masochism is a bad thing.

[B.M.W Ltd 950]

2 hours ago, Gabe79 said:

On a bmw forum I feel it's a bit weird to suggest masochism is a bad thing.

I thought everybody who came onto this site was into self harm ?

Edited March 13, 2019 by B.M.W Ltd

[KwS 2424]

5 hours ago, B.M.W Ltd said:

I thought everybody who came onto this site was into self harm ?

Guess that explains why a large number of us on here have owned multiple BMWs.... 

[coop 261]

10 hours ago, gjm said:

 

CGT is paid on profit from gains realised through little or no effort. 33000 houses were empty in Auckland alone in 2017; these are typically owned by investors who bought them with a view to sitting on them, selling them in a couple of years, and gathering a 20%+ profit. (Whether they do get that sort of profit is another matter.) Effort - zero. Other than having the money to begin with, and there are people who do this for a 'living'. Applying CGT to these gains (to me) makes sense.
Applying CGT to Kiwisaver, small business gains and so on is a different matter.

Scrap the brightline bullshit (which, let's face it, is only a short-term CGT by another name) and do the job properly. It's sad that reying on a government to do someting properly isn't a rewarding passtime.

 

 

 

The brighline test is paid on profit (short term). A percentage of sellers who fall under it will profit from little to no reward but you can bet in this flattened market there is no one buying for short term capital gain, unless they are buying & improving properties (Reno, landscaping, adding bedrooms etc) and selling for profit, and there is nothing wrong with this. 

The majority of CGT won’t be paid on profit, it will be paid on inflation, and or hard work (building up a business). And nearly all families will be paying it on a family home, either through inheritance, if the home is business tax deductible (and a lot of small businesses rely on the house as part of their business), or the 400,000 of so eligible lifestyle blocks in NZ. 

 

The bright line test is a ‘fairer’ way of targeting property speculators. I’d extend it to the family home to avoid any loop holes speculators use to avoid it, and bad luck to any private sellers that happen to buy and sell within five years. 

As I said before most property investors are in the game long term. Buy and hold, pay down debt on P&I mortgages and increase cash flow. It’s not a huge issue to most of them. It will end up hurting ordinary kiwis more - those with small businesses, those who stand in line for inheritance, those who rent out the granny flat, the single dweller or couple that Airbnb their house a couple of nights/week to help pay the mortgage, the family on $80k per year who want to sell their $400k rural lifestyle block (while the family on $250k pa don’t pay it on their 2.5 million dollar Mission Bay mansion). 

Edited March 13, 2019 by coop

[Young Thrash Driver 1020]

10 hours ago, gjm said:

Scrap the brightline bullshit (which, let's face it, is only a short-term CGT by another name) and do the job properly.

This is why I think Winston will support it, he has already used the excuse that National has started down X path so he's just finishing the job.

[richard 384]

we should stand firm against a CGT. We are taxed too much as it is now and if you think they will reduce other taxes to balance it out your dreaming , maybe in the first term but like all taxes they will go up over time. once introduced there's no going back.

[gjm 3258]

12 minutes ago, richard said:

we should stand firm against a CGT. We are taxed too much as it is now and if you think they will reduce other taxes to balance it out your dreaming , maybe in the first term but like all taxes they will go up over time. once introduced there's no going back.

My point exactly. National will wring their hands and say how terrible it is, but if implemented, National are very unlikely to repeal a CGT.
After all, they introduand ced the brightline nonsense, while saying there was no housing issue in NZ. They didn't want a CGT, so they've pigeon-holed it called it something else.
The TWG suggestions go too far in my opinion. As others have said, lifestyle blocks and homes used to run a business shouldn't be attracting a CGT. Review of the whole range of suggestions is required, and while a CGT could be applied to a family home, there should be a threshold, evaluation of any gains made, and time limits applied. The family bach overlooking the sea in East Coromandel (it'd be nice!) which has been owned for 75 years is a case in point - how do you assess gains on something like that? An agreed length of tenure means, in my opinion, that CGT shouldn't apply.

[Young Thrash Driver 1020]

The thing is though, the Working Group never wanted a CGT- until they were told to go away and think again. Political interference is at play here. The 3 most (only??) clued up members of that group were and remain dead set against any CGT.

[kiwi535 538]

a cgt should be part of flattening and simplifying the whole tax system Make it more difficult to avoid /evade taxes then everyone pays their share.There is a line to be tread here.If they make investment in property too difficult then is the government going to become the landlord of choice?Cos mum ans dad propery investor will have fled

[gjm 3258]

26 minutes ago, kiwi535 said:

a cgt should be part of flattening and simplifying the whole tax system Make it more difficult to avoid /evade taxes then everyone pays their share.There is a line to be tread here.If they make investment in property too difficult then is the government going to become the landlord of choice?Cos mum ans dad propery investor will have fled

One of the scaremongering responses to the idea of CGT is around the private landlord situation - some against CGT say that private landlords will cease to exist, leading to a greater shortage and (even) higher prices int he rental market. Yet countries like the UK and Germany (especially Germany) have CGT and a very healthy private landlord situation.

I predict CGT will make, in the medium to long term, zero difference to investors. The only property investors who will be affected are those who have bought, with a view to selling and making money from a capital gain. Longer term investors, those who have bought but carefully funded and rented/leased their property for ongoing return, won't care.

 

[kiwi535 538]

12 minutes ago, gjm said:

One of the scaremongering responses to the idea of CGT is around the private landlord situation - some against CGT say that private landlords will cease to exist, leading to a greater shortage and (even) higher prices int he rental market. Yet countries like the UK and Germany (especially Germany) have CGT and a very healthy private landlord situation.

I predict CGT will make, in the medium to long term, zero difference to investors. The only property investors who will be affected are those who have bought, with a view to selling and making money from a capital gain. Longer term investors, those who have bought but carefully funded and rented/leased their property for ongoing return, won't care.

 

dont care is proabaly not actually correct.Probably more like the effect is rather neutral and that is ho it should be.Oue tax/investment scheme is far from neutral

[Olaf 3314]

On 3/13/2019 at 8:22 AM, Driftit said:

Before June this year at this stage.

Not going back to Auckland though.  Had enough of it.
Will be the Wairarapa for a bit.

Prob build a huge shed somewhere like what Chris has.

awesome!  you can join us on the road runs etc down this end of the island.  

[Driftit 2078]

On 3/15/2019 at 3:15 AM, Olaf said:

awesome!  you can join us on the road runs etc down this end of the island.  

Yeah for sure. Will get another daily BMW/s. And then look to move the E34 away from the circuit and towards targa. 

[Jacko 2153]

Drove a new Holden Spark as a rental. Worst car Ive ever driven. 

 

Driving it is like sitting in a plastic lunchbox, not a good one, but one of those disposable ones that come in packs of 20 from paknsave. 

The CVT acts like there is a 50 foot rubber band between the engine and wheels. Its so, so bad. I was trying to pull out in traffic by jamming brake and accelerator to try take up some slack in the rubber band, but it still takes 3 seconds to wind up after planting the go pedal.

Its so over sprung small bumps feel like they are going to throw you off the road, and there is so much castor in the steering that it tries to rip your hands off the wheel when straightening out. 

 

I cant believe someone signed off on this thing, and said "Yup, thats ready for sale". Who buys them? What is wrong with them to pay money for this?

Holden would have been better off slapping their badge on a 1990 toyota starlet and selling it in 2019. 

[NZ BMW 368]

People who drive 60 in the Waterview Tunnel... 

[B.M.W Ltd 950]

Now carless... going through an intersection at the Tristram Road motorway off-ramp on the green light I got "T" boned by 4 youths fleeing police in a high speed pursuit. Happened 12.15pm yesterday

Edited April 10, 2019 by B.M.W Ltd

[qube 3570]

well i hope that you and anyone else in the car is alright and the damn youths were caught... 

how did the kona take the impact? buy again?

[B.M.W Ltd 950]

4 minutes ago, qube said:

well i hope that you and anyone else in the car is alright and the damn youths were caught... 

how did the kona take the impact? buy again?

Thanks Kyu. I was by myself the car took the impact well and I'd buy again. I just don't want this one back now. Hasn't even had it's first service

[E30 325i Rag-Top 2956]

sh*t, that sucks mate. As long as you and yours are all safe and well Glenn, that's the main thing. Glad to hear you're Ok.

People are a lot harder to fix than cars unfortunately.

[zero 1162]

On 3/13/2019 at 9:14 AM, gjm said:

I saw National offfering two tax cuts at the first election we were here, at a time when labour was saying the country couldn't afford them. The first tax cut went through, but the second didn't - National subsequently agreed it was unaffordable.

 

Both went through - in fact there were three tax cuts.

Labour did a tax cut in 2008 when they panicked they would lose the election, which National voted in favour of and promised not to undue if they won the election.

Then when National became government they put their first tax cut through in 2009, and then the big one in 2010.

[Olaf 3314]

21 hours ago, B.M.W Ltd said:

Now carless... going through an intersection at the Tristram Road motorway off-ramp on the green light I got "T" boned by 4 youths fleeing police in a high speed pursuit. Happened 12.15pm yesterday

Jeez Glenn, I trust you're uninjured, and your insurance replacement is rapid.  I was going to say Swift, but I didn't want to wish you a Suzuki.

Do the Police arrange a 'free shot' as part of restorative justice?  Bonehead playstation drivers.  Bring back the stocks.