Imagine if the rich listers paid the same tax rates as beneficiaries…

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The National Business Review published its annual celebration of unearned wealth last week with the breathlessly-reported news that this bunch of specialised parasites increased their wealth from a net of $79.9 billion in 2017 to $100.8 billion this year.

Part of the increase came from 34 newcomers but they contributed just $5.89 billion to the overall increase meaning the old rich listers got $15 billion richer last year. The wealthiest, Graeme Hart, increased his riches by $1.5 billion.

We know from Inland Revenue that half of our “high net wealth” individuals pay income tax on less than $70,000. Yes, that’s right – they don’t even get into the top income tax bracket.

And they pay a miniscule percentage of their income on GST compared to beneficiaries and minimum-wage workers. (For the top 10% of income earners GST takes less than 5% of their incomes while for the lowest income 10% GST takes 14% of their income)

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Beneficiaries and minimum-wage workers pay 28% of their income in taxes (14% on GST and 14.5% on income tax) while the rich listers pay pocket-money taxes.

Imagine if these privileged super-wealthy were required to pay the same tax rates as beneficiaries?

Taxing just the increase in their unearned wealth from last year at 28.5% would provide around $5 billion more in government income which would get all our kids out of poverty, improve our public services and the quality of life for all of us.

If only the wealthiest New Zealander, Graeme Hart, paid the same tax a solo parent we’d have an extra $420 million in government income.

This is not asking the rich listers to pay anything more than anyone else – just for the government to insist these corporate bludgers pay their way like the rest of us.

37 COMMENTS

  1. Quite right, John.

    Depressing, isn’t it? -especially when we know the government has no intention of changing the system, or can’t.

    Business-as-usual, for now -which means the rich get richer and the poor continue to languish.

  2. The Meaning of Freedom
    A review of Rob Larson’s “Capitalism vs. Freedom”

    In his new book Capitalism vs. Freedom, economist Rob Larson further develops a “left” idea of freedom. But in doing so, he departs from the usual way of framing the “positive-negative liberty” debate. Often, the left says something like “Free market economies may provide ‘negative’ liberty, but they do not provide ‘positive’ liberty.” Larson says that they do neither. In fact, he says, capitalism both restricts people’s ability to act and acts upon them against their will.

    Ironically, the concentration of capital means that one of the great fears about socialism—that decisions about what to sell would be made by small, unelected groups of bureaucrats, rather than determined by competition—is increasingly coming true under capitalism. As Larson writes, “rather than the ‘planned economy’ of socialism that haunts Hayek’s dreams, it is corporate monopoly and oligopoly, and their industrial organizations, that are the main source of today’s central planning.” Instead of the government determining which speech will be heard, and which product features will be offered, the decisions are made by Mark Zuckerberg and “Jack,” who nobody ever voted for.

    Capitalism ensures that we are not free. Even having these parasite pay more tax won’t free us from their grasp.

    We have to make being rich impossible.

  3. unknown quote
    “i cant believe this needs to be said, but the rich are not doing you a service by employing you.
    They require you.
    Without you.
    Everything they have is contingent on the fact that you work for them and do what they say.
    Without you, the rich have literally nothing.
    Workers have power over the entire economy.
    It is actually workers doing a major service to their employers by not unionizing and not starting a revolution, since literally the only thing workers need to do to grind the entire economy to a halt is put their hands behind their backs and stop working.
    That is it.
    Workers could crash the entire machine in one moment if they wanted.
    Stop calling them “job creators” they arent.
    They literally require you. But you dont require them.
    You are wealth creators.
    And you have the power to take it back whenever you want.
    YOU JUST HAVE TO ORGANIZE.”
    end of quote
    Imagine a world wide strike involving everyone with paid employment to end the current attempt at social media censorship, or even the uneven and oppressive taxation system, criminal pot suppression, state spying on own citizens or any thing else that riles you.
    wanna see results? then down tools walk off that job and make a sign.
    Its not that hard, mostly its just fear that keeps you all in line.
    they cant lock us all up they dont have enough prisons or coppers.

    • Thats quite true. I never thought about it like that. The rich deep down know this but won’t mention it out fear it would turn into reality…

  4. Okay. I’m asking.

    When is the Coalition government going to return our GST rate to 10%? And when is the first $10 000 of income going to be tax free for people receiving less than the living wage amount?

    Or is all this ‘out of poverty’ talk just talk?

    And when are workers going to get matching perks with the business barons? Not too many people get tax rebates these days.
    There’s a lot of talk about how the owners are putting time, money and energy on the line.
    So do workers.
    If the boss is a dingbat and goes to the wall – the workers also lose out badly – particularly if there’s no money in the kitty to pay earned entitlements. Seems like it’s a shared risk instead of only the heroic ‘entrepreneur’.

    If we can get some of this sorted, we might not even have to bother the upper crust on the septic tank for any extras.

  5. Can you not here the TRICKLE? Can you not here the TRICKLE DOWN?

    If the trickle down theory is right it should be pissing down with charity now, where is it?

  6. As much as Aussy sux they have had some workable ideas when i comes to the poor, tie G.S.T. collection to Community Services cards, a beneficiary can present their card at the super and get G.S.T. removed from basic food purchases, not included is cigs and bickys lol, id suggest a slimier system here, gas and fags is the biggest drain on a beny, but we are all over taxed on these items, you cant go look for a job if you cant afford gas, Winstons right all the way about that.
    All Austerity does is kill small business, wealth dont trickle down it flows upwards, to improve prosperity for all, the lower rungs of society needs to be well paid, Ma and Pa small business needs drive bye action.
    When a third of GDP is taken up bye Government, theres something wrong with the system, when the Government actively hides its election funding, theres something wrong with the Government, when Government Ministers make money for themselves selling people owned assets, theres something wrong with the entire system.
    Before the election Winston called for an Investigation into party funding donations, now Crickets, The prime ministerial salary of over 400,000 is obscene, so is the ministerial salary and the perk package for politicians. Instead of blaming the blameless try a bit of Austerity your goddam self’s.
    Want the foreign owned banks to piss off? increase their personal taxation to 60% of profits taken offshore.
    want foreign ownership of your rental to cease, tax the landlords who send funds offshore, they’ll soon sell.
    want to reclaim your water resources, tax water removed to overseas per liter, dollar a bottle. Want pollution and 1080 stopped Tax it out of existence dont cater to the users because they support your re election funds.

  7. Your argument does not make practical sense. If you walk up to me on the street and give me $10, then I give you back $4. I haven’t paid you $4, you’ve paid me $6.

    Beneficiaries pay no tax because they never earned their income in the first place.

    Take the point about min wage earners though, that is fair enough. But the statement ‘Imagine if these privileged super-wealthy were required to pay the same tax rates as beneficiaries?’ is misleading and hysterical.

    • J, You know nothing about the lives of beneficiaries. They volunteer; they raise children to be the next workers; they once may have had a job but greedy businesses laid them off to make extra profits; all sorts of circumstances make a beneficiary.

      What you are describing is tax-paid beneficiary self-interested, greedy national/act mps and then you are definitely correct in that they haven’t deserved their income in the first place.

      As for minimum wage earners; I can see why you have made these ridiculous comments because you’re one of those that think it is okay to pay wages that do not allow people to live on them. That means your comments are greed-driven in that you wish to profit from the labour of others.

    • Actually the vast majority of beneficiaries, unlike the wealthy, pay way more tax in their lifetime, than they use.

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