Word of the day

20/07/2021

Hiemal – characteristic of or relating to winter; wintery.


Sowell says

20/07/2021


Rural round-up

20/07/2021

Farmers are riled up over everything and they’ve got a point – Kerre McIvor:

It takes a lot to get farmers off their land. But Friday’s Howl of Protest saw a goodly representation of every man and his dog fire up the Massey Fergs and John Deeres aroundthe country and take to the streets in protest.

There wasn’t just one issue that had got them so riled up.

Farmers don’t see why they should be taxed to assist high-income city dwellers into electric cars when the rural community has no alternative right now but to use internal combustion engine 4WDs to do their work. . .

Can you hear us now? –  Annette Scott:

The deluge of new regulations and costs from the central government spilled over into protest on Friday when farmers, contractors and tradies across the country rallied for the Howl of a Protest.

Trucks and harvest machinery, tractors, utes, transport companies and dogs took to Ashburton’s streets – just one of more than 45 towns and cities from Kaitaia to Invercargill – to host the peaceful protest rallies.

Organised by Groundswell NZ, in an effort to stand up for farmers, food producers, contractors and tradies against what it claims to be a tsunami of unworkable rules imposed by the central government.

Groundswell is seeking the scrapping of the freshwater, SNA, biodiversity and ute tax policies, changes to immigration, climate change and the Crown Pastoral Lease Act policies. . . 

Faith in farming future shaken – Colin Williscroft:

Future increases in the price of carbon will push hill country farmers off the land, a Central Hawke’s Bay farmer says.

Clem Trotter, who farms with his wife Mickey west of Ongaonga, questions what sort of future sheep and beef farmers on the east coast of the North Island face.

The couple attended last month’s carbon forestry conference in Rotorua and prior to that they believed that targeted tree planting on-farm, while retaining productive areas for agriculture, offered plenty of opportunities for farmers but the wholesale planting of regions needed to stop and something had to be done about it.

From what Trotter heard at the conference, which he says attracted far more lawyers, accountants and investment managers than it did farmers, he now thinks it’s too late for that. . . 

Another protest coming – Sudesh Kissun:

Another nationwide protest by farmers will be held on August 16 unless the Government listens to their concerns.

This was announced at the Groundswell protest in Morrinsville where over 2500 people backed by 250 tractors and 100 utes took part in a rally.

There were calls for the Government to review its policies around farming, especially those related to sustainability and water. Tradies are also unhappy with getting hammered with a clean car tax on utes, vehicles considered an integral part of their job. . .

Palmerston North farmer makes up to $4000 weekly giving virtual tours :

Palmerston North farmer Arthur Chin makes about $4000 in a “good week” hosting virtual tours of his one hectare property.

He told Seven Sharp in his first year of doing it he has hosted 358 tours for more than 4000 people in 32 countries.

Forty-five per cent of his customers come from the US and about 25 per cent from Europe. . .

US and Canada heatwave hammers crops, forcing up global grain prices – Michael Condon, Angus Verley, and Belinda Varischetti:

A heatwave across the United States and Canada is having a devastating effect on crops and pushing grain stocks low.

It is good news for Australian farmers, though, as the price of canola is rocketing.

In the United States, temperatures in some regions have risen to 50 degrees Celsius, smashing previous records, while Canada is in the grip of its worst drought in two decades.

Temperatures have risen to record levels in the Pacific North West and parts of California. . . 


Yes Sir Humphrey

20/07/2021


Now they’re coming for the dead

20/07/2021

Labour broke it’s no-higher-taxes promise with the extension of the bright line test.

It broke its no-new taxes with the one on utes.

Now it’s looking at bereaking the no-new taxes promise again by taxing the dead :

 There are a couple of pieces of evidence to suggest may Labour may want to go to the next election proposing an inheritance tax.

The first is the Government’s decision to allocate $5 million over two years to Inland Revenue in the Budget to assess the income and wealth of high-wealth individuals.

An IR spokeswoman confirms that work should shed light on issues including the amount of inherited wealth.

If the Government is going to consider an inheritance tax, commissioning such research was probably going to be a necessary first step. . . 

Taxpayers’ Union Campaigns Manager Louis Houlbrooke lays out five reasons against the idea:

Incentives: A death tax would discourage New Zealanders from saving and investing their earnings. Less capital would be built up as older New Zealanders choose to spend their savings instead of building an economic legacy for future generations.

Fairness: A death tax is a double tax. Someone would spend a lifetime giving up their earnings via income tax, only to have their remaining earnings taxed again as savings upon their death.

Complexity: The biggest beneficiaries of a death tax would be accountants and tax lawyers, who would be engaged by the wealthy to thread investments through complex exemptions and loopholes in the tax, such as exemptions for farm assets, trusts, and gifts prior to death.

Gift tax was axed a few years ago because it garnered so little.

Revenue: Any revenue from a death tax would be meagre. Of the OECD countries to have implemented death or gift taxes, an average of just 0.5 percent of total tax revenues is generated by those taxes. This means that even if our government decided to make a death tax revenue neutral by cutting income tax, the income tax cut would be nearly imperceptible.

Problem definition: A death tax, or indeed any kind of wealth tax, fails to address the actual causes of rising inequality: specifically the shortage of housing which has pumped up the value of assets held by the upper and upper-middle class.

Sigh.

If only the government put some effort into carefully managing the money it already gets rather than devising additional ways to part us from more of ours.

Instead of looking at ways to take more money from taxpayers the government should be analysing its own spending and reducing the burden of tax, reducing the amount needed in the public purse and leaving more money in the public’s pockets.


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