Monday, May 9, 2011

Rich tax avoiders crippling New Zealand.


We already know that half of the wealthiest people in  NZ pay little or no tax.

Bernard Hickey on tax avoidance.

"Among the professional and entrepreneurial classes it is seen as par for the course to shelter assets and income in family trusts and company structures that help reduce or avoid tax.
Many of the multi-national companies operating in New Zealand funnel income, assets and debt through various tax havens and vehicles that keep tax paid here to a minimum.
Most of our politicians, city councillors, bankers, accountants and judges use such vehicles to protect their assets from the prying eyes of Inland Revenue, creditors, ex-spouses and, ultimately, the courts. New Zealand now has up to 400,000 family trusts.
It means the vast majority of taxes are paid by the mugs on PAYE and by those who have to pay GST for their goods and services.
The policy-making classes believe this dual tax system will not change because they run it."

Of those that do many avoid paying anywhere near the tax paid by PAYE wage earners on average incomes.

I am still waiting for a farmer to reply to my challenge to any farmer who actually pays income tax to speak up.

These are the people who benefit most from the infrastructure, stability and property protection paid for by New Zealand tax payers.

Those who avoid taxes, they should pay, are stealing from the rest of us.

When Labour left office the Government deficit was zero. If the tax avoiders paid their fair share we could afford all the present welfare, infrastructure and community services. And extend our successful ending of poverty amongst the elderly, to children. OECD report on NZ super.

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