Spyke

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The Green Party’s tax plan

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Corporate tax? Every $ they’re paying tax on could have been used to pay their employees better.

You know that the tax is paid on profit right; money they pay to employees is an expense and thus not taxed.

They could pay their employees more and reduce their tax burden currently and in the Greens tax plan.

Lets run a thought experiment:

  • If we raised the corp tax rate to 100%; all profit goes to govt shareholders/owners get nothing.
  • Corps would work very hard to ensure their expenses; matched as closely as possible to the income they receive.
  • One easy way to do this is at the end of the tax year; give bonuses to employees (who then pay income tax) to balance your expenses exactly to your income.

And another:

  • If we drop the corp tax rate to 0%; all profit goes into the pockets of the shareholders/owners
  • Corps would work very hard to ensure the expenses are as low as possible to get the most for those who own the business.
  • One easy way to do this is to squeeze the employees pay as low as is possible.

Obviously there is a happy medium between 0-100%; that exact number is up for debate. But lowering the corp tax rate does not necessarily incentivize higher employee pay. In fact the opposite would be true in many cases; especially in mature industries where labor is not constrained.

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omg :o

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I would like to add some context.

I used to work in a factory; we had two machines that were designed in the 80's. Both had the "upgrade" package purchased some time back; they were running the latest WinXP (home) on embedded computers.

The company went out of business sometime in the early 00's; the replacement from a competitor was $7M USD (but only in the states) ~$15M NZ to ship and install.

So for ~$30M we could replace perfectly working equipment with something that did the same job.....because of an old computer. We would have achieved no extra production, or better quality. So the decision was, every year, keep it going as is.

It sometimes is not as simple as "you should have upgraded already".

The contingency plan I helped implement was to virtualise the application in a VM on the main server; run the comms to the embedded system using a serial to ethernet converter. I tested it a lot and found that it worked very well....never put it into production as it was "backup only" but it was better than hoping it wouldn't fail. The embedded systems themselves were relatively simple with replacement components that were not too difficult to get hold of.

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Are You Kids On Dopamine?

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I understand this...a lot. Cookies/chips/snacks etc, they come in single serve containers, it doesn't matter how big the bag/box is.

Tip.

  1. Buy bag of cookies
  2. Split cookies into 10 small containers
  3. Have two(ish) cookies as a reward for completing this task
  4. Use "whole" containers as a reward for other tasks throughout the week.

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The Green Party’s tax plan

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It isn't just the 7 tax brackets, that isn't that hard to deal with.

It is the complexity with valuing a bunch of stiff to calculate tax on.

The inheritance tax isn't a bad idea, we are an outlier internationally WRT to this.

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The Green Party’s tax plan

There are a few things to like here. I would rather the number were a little more clear.

I would rather see the total tax take; not just the differences. Where thy say "tax setting changes -$2,335M" I would like to know is that 10% less or 2%; so I could compare it to the proposed tax increase from the other sources they are expecting.

From budget 24/25 contributions from individual tax were $62.2B; which gives us a better understanding of how these numbers stack up.

So individuals will collectively get about a 3.75% tax cut; weighted to the lowest income earners.

Corporate tax was $18.2B which if I'm reading their policy correctly, will increase to $20.15B. Which is about a 10% increase.

New taxes and restoring landlord taxes will gain an additional $5.37B.

So for the entire $136B crown revenue the increase is ~4%.

As an Opportunity supporter I have to contrast it with their policy to see how it stacks up:

OpportunityGreen
Headline thingCitizens IncomeTax super rich
Tax Brackets37
Wealth tax typeLand Value TaxValuation based system
Net tax difference+$4.1B+$5.3B
Complexity (admin cost)ReducedIncreased
Ave wage comp ~$68k+$6,651/yr (with $300k land)+$577/yr
Ave wage comp ~$68k+$11,901/yr (renter)+$577/yr