Submission to Tax Working Group

Lindsay Perigo's picture
Submitted by Lindsay Perigo on Thu, 2018-04-26 07:14

From: Lindsay Perigo
Date: 26 April 2018 at 18:35
Subject: Submission to Tax Working Group
To: submissions@taxworkinggroup.govt.nz

Dear Sir Michael and members of the Tax Working Group,

I submit the following interim tax regimen, as a meaningful step towards the overthrow of the Nanny State and against the propensity of unproductive and anti-productive politicians to mess with the lives and earnings of the productive:

1) Income Tax: 15% across the board, with the first $15,000 exempt. The one exception to this to be the aforementioned politicians:

1a) Politicians Tax: Politicians to be taxed at 85%, in order not to encourage them.

2) GST: 15% across the board.

3) Company Tax: 15% across the board.

4) Excise taxes: all product-specific taxes such as those on fuel, tobacco and alcohol to be abolished. Ordinary GST only to apply.

5) Behaviour taxes: all proposed taxes on Nanny-disapproved behaviour, such as a sugar tax, fat tax, tall tax, laughter tax, joke tax, existence tax, being white tax, heterosexuality tax, etc., to which power-lusters are pathologically attracted, to be definitively disavowed on the grounds that people have the right to live their lives as they see fit and should be left alone to do so. Politicians to be required to spend their first year in office in re-education camps where this principle will be painstakingly explained to them. Incorrigible cases to be deported to Cuba, Iran, North Korea, Zimbabwe or California.

Beyond the points made above, I endorse the broader submission made by the New Zealand Taxpayers’ Union.

Yours sincerely,

Lindsay Perigo


Good on you, Linz.

Mark Hubbard's picture

I just got a direct message from a TWG committee member - not naming Smiling - that out of 6,700 submissions, Treasury specifically passed on my below submission ... got no idea what that means.

My submission:

Submission to the Tax Working Group.

16 March 2018

To the Members of the Committee.

It will be pointless me advocating less tax and the need for a smaller state to this committee, so I won’t try. I long ago realised that society is once again on the road to its big state serfdom (this iteration via taxation, securities, and our monstrously expensive and intrusive anti-money laundering legislation), and that individuals like myself with the quaint belief that freedom is an end unto itself are a dying breed whose graves will soon enough be jackbooted over by these awful social justice warrior clowns demanding their entitled ransom of flesh from the free and self-reliant… which brings me back to tax.

The only point I would ‘plea’ for among the otherwise damage you will be recommending, is the abolition of resident withholding tax (RWT) on interest income.

A decade after the GFC we have had central banks around the world, including RBNZ, move us to command economies whereby in an act of insane hubris bureaucrats have destroyed the price discovery of free markets by commanding for themselves the pricing of that most basic commodity of all: money. Worse, over this decade they immorally decided to price money, via interest, artificially low to grow historic speculatory asset bubbles in financial assets, including property, at the expense of, and the sacrifice of, prudent savers such as myself and the elderly, whom wisely won’t touch these stimulunatic markets – modern portfolio theory be damned – and have confined ourselves to term deposit investments in investment grade banks, (having also learned from the junk grade finance company collapses pre-2008): this investment strategy has been made costly for us.

All my wife and I savings are in such deposits that were saved almost solely from our earnings over the last 30 years on which we both paid the top personal rates of tax. Now we are effectively being taxed a second time on those same earnings, and we are the investor class earning least of everyone: why are conservative, and in our case, high tax paying people, the ones being victimised by the state through this immorally disproportionate burden of tax? My wife is adamant our returns are so ludicrous we may as well just drink our bloody savings. And we are, to some extent, doing that, despite the cost due to the excise taxes on alcohol – (side-line note, taxing fun is pathetic, and Mr Cullen’s stated aim on using the tax system to change lifestyle choices is totalitarian. Not on at all.)

Not only do we need a microscope to see our real return on investment, which across all our PIE deposits is currently 0.15% after tax and inflation, but the RWT thus plays havoc with the otherwise magic of compounding – (noting at least we have PIEs to cap our tax at 28%, but that is still over a quarter of our measly interest income). Further, people like myself look at farmers growing hugely rich on tax free capital gains in land they’ve filled with shit ponds, due in big part to this decade’s cheap funny-money credit, and at perhaps one in twenty share traders/investors paying tax on capital gains in their NZX/ASX sharemarket investments, and are justifiably pissed off at RBNZ having sacrificed our returns to the speculators of this loose monetary policy from the asylum. Albeit, please note, the answer is not to tax their wealth, which is communist: the answer is to stop taxing my wealth, thereby punishing myself and my wife, and fellow savers, for taking conservative, prudent investment decisions. The financial world currently is turned on its head, and is lunatic, frankly.

Given savings are the powerhouse of properly functioning free economies – and okay we are far from those with the lunacy we’ve seen of QE (every governor of the BOJ should be in a straitjacket) – it defies sense for any government to tax and disincentivise such saving. We need to encourage saving, but for the reasons given above, given such pathetic interest rates, RWT on top of inflation makes prudent investment imprudent, and I suspect many elderly have been forced to move their term deposits into inappropriate riskier class assets which will, on the coming Great Collapse of Keynesian economics and this laughable price stability by central banking, be beyond sad. It will be tragic for them. Many would not have made this switch, had they been left with the tax deducted from their interest income – it could have made all the difference.

And that’s it, other than one final point, small, but necessarily symbolic of the free society over the command state we voted in at the emoting booth: reinstate the child rebate that the miserable bastards in National cancelled; let a kid do a paper round without being fleeced by an out-of-control state and allowed to live with the illusory vision of a free life and volition up until at least their late teens.

Signed with very little respect given what I know this committee will be coming out with,

M D Hubbard

Republished ...

Lindsay Perigo's picture

... on Kiwiblog, which is YOOGE!

https://www.kiwiblog.co.nz/201...

I enjoyed one of the comments in particular:

I kind of miss Lindsay on TV and radio. He would of course be screamed off any NZ campus by SJW nowadays. Our equivalent to Milo in political ideas, and both incidentally gays.

I was—kind of—screamed off campus on one occasion by some Muslims and their weasel apologists, as everyone here knows who read my subsequent "Magnificent Pandemonium" article. But it's worth noting the most venomous opposition to me comes not from SJWs but Obleftivists (who are, of course, weasel Islamapologists)—though on reflection, I suppose the terms are synonymous.

Oh, and I had to roll my eyes at a couple of comments on Kiwiblog, obviously from accountants, who took my every proposal in deadly earnest and sought to improve upon it with percentage points here and there and the like. The bit about "significant interim step" and all the rest always evades pedants and pen-pushers, as do the humorous parts.

Yep

Mark Hubbard's picture

No disagreement with any of these, although I'd put income tax, corporate tax, and trustee tax rate down to 10% ... and you have it right, Linz, so logical to have all at same level to stop gaming the system; the current differential between corporate and personal/trustee rates is the design of infants who have no grip on real world.

Only other immediate measure I'd put in, per my own submission, is to forthwith abolish RWT on interest. For those of us 100% invested in cash because we would not touch these un-real central bank made bubble markets in shares, bonds and property, we would finally not be forced to be the butt of the sacrifice to the speculators and the common-good-Everest-of-Debt that has been created out of thin air, and is about to wreck havoc on our Western command economies, and we could get back to savings as the engine room of an 'actual' free market again, until all the central bankers are institutionalised in the appropriate facility they should have been for the last ten years, not making these momentously stimulunatic choices for us they have over last decade. The BOJ is the embodiment of the Kamakize tradition again.

Indeed, I would move to stop taxing all forms of investment income, although imputation pretty much does that for dividends (once income tax and corporate tax rates are aligned).

Importantly, I would also be looking at our Tax Administration Act and the huge, inappropriate power the IRD has, way above powers of police, especially ability to raid without warrant, and working in the stratosphere above all privacy legislation. Although this can only be finally fixed by abolishing all taxes on income.

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