Sunday, July 24, 2011

The answer to violence is even more democracy. Even more humanity”


Norwegian PM Jens Stoltenberg: “The answer to violence is even more democracy. Even more humanity” 

Some world leaders get it!

Thursday, July 7, 2011

Some glimmerings of hope.


At last Labour (NZ's, until now, slightly left  Neo-Liberal party) are showing some signs of offering real visionary alternatives.
Comment from Labour.

Good on them.

Some thoughts.

The reaction shows that sensible people have been waiting for alternatives from the present voodoo economics.

CGT should be universal on any appreciating asset.
Without a CGT PAYE payers are subsidising speculators .

It expands the tax base in a way that also discourages unproductive speculation and borrowing.

Capital gains income should be treated the same as any other personal income for tax purposes.
Why should you pay up to 33% on your work income and a speculator or someone who does up a house for sale pay only 15%.

It has to be retrospective to have any real affect.

The family home will probably have to be exempt to make the policy politically palatable, but I see no real reason to complicate CGT by doing so.
Like GST, I believe tax systems are much harder to rort if they are kept simple.
I can see a lot of single children of wealthy people suddenly acquiring a family home.

If it is, there are several ways to make it less distortionate (Suggestions only. There are more).
1 The family home could be exempt up to say, twice the mean price.
2 First homes only could be exempt from CGT.
3 More State housing both to rent or buy keeps prices within reach of ordinary people and puts a further downward pressure on house prices.
4 Only charge CGT on the gap between selling a house and buying the next one.
5 Allow for inflation and normal maintenance.

Now we need to look at the bonanza for banks and speculators and nightmare for manufacturers and workers. The reserve bank act.

We wait with anticipation, the official announcement.