Revenue Minister David Parker says he will not be announcing new taxes and said if there were any tax changes to announce, they would occur in Labour’s revenue policy for the 2023 election. Photo / Mark Mitchell
Capital punishment
With heroic interpretation of what constitutes income, the IRD has, at great expense, produced a report that delivers the desired result for a Labour Government in election year. By treating capital growth in unsold assets as taxable income, the report creates the illusion that the wealthy pay proportionately much less tax than less wealthy taxpayers. If the traditional definition of income were used, it would show wealthy taxpayers pay a proportionately much higher rate than most. However, a capital gains tax would only levy the gains from the sale of assets at the time of sale. This short-sighted style of politics fails to recognise that the wealthy are the investors, the innovators and the employers that drive the economic growth that benefits everyone. Unrealised capital growth is often reinvested in the business to fund the expansion that brings more jobs. A small economy such as ours is constrained by a lack of investment capital and any policy that could lead to an exodus of our wealth creators would be hugely damaging to our economic future and we would all be poorer as a result.
George Williams, Whangamatā.
Zero improvement
Murray Hunter (NZ Herald, May 8) asks for a zero-tax bracket, which Australia has and New Zealand has not. Perhaps the following will allay his (and others’) concerns: Instead of a zero-tax bracket, we have tax rebates and direct subsidies. The financial outcome of both systems is similar but there is one major difference. Our system is benefiting only the needy, while in Australia - shock, horror - also the wealthy profit.
K H Peter Kammler. Warkworth.
King and saviour?
He’s a funny old thing, we say of King Charles. He has quietly gone about re-establishing old, traditional life skills, setting up a place decades ago to bring those from school, those who found academia too difficult to unravel, into the care of older, clever workers with other ways of building, carving, weaving things at little expense to the environment. He is also a patron of the arts and a careful gardener, passing on those skills required to keep the soil safe. Since the 1960s he’s spoken of our wont to poison air, sea and earth, much to the delight of many who took the opportunity over the decades to denigrate his warnings. We have no leader for our planet. No one of any worth who is constantly speaking up on behalf of our future generations. Here’s hoping this man, who had millions of people viewing his coronation, can harness that popularity and keep using it to save our souls from the destructive elements we are loosening on our planet. He could be our last chance.
Emma Mackintosh, Birkenhead.
Toiling teens
I totally disagree with Gary Hollis claiming that university is only for the rich. Teenagers I know worked hard, weekends at supermarkets and fast food outlets while they were still at school and further shifts during school holidays. They squirrelled their earnings away and now, together with the Government’s loan, are doing it for themselves.
Judy O’Halloran, Northcote.
Republican route
Prime Minister Chris Hipkins has announced in London that he expects it will not be long before New Zealand becomes a republic. Very “timely” in view of his being a guest, representing us, at the coronation and his meeting with King Charles III. However, he and we need to contemplate the stable and near trouble-free existence New Zealand has had under our present very long-standing system. Contemplate the record of countries such as Russia; Nazi Germany; Zimbabwe; the US (under Donald Trump); China, etc, and what can happen when you get a narcissistic, self-focused, power-crazy, even psychopathic, dictatorial lunatic in charge. Can’t happen? We all know it can happen - because it has numerous times. We need to be very careful in contemplating any change, particularly in a country arguably as divided as we are right now.
Hugh Perrett, Remuera.
Royal treatment
While I did enjoy all of the pomp and ceremony that really only the British can turn on, it’s also interesting to note how short people’s memories are. It wasn’t all that long ago that then Prince Charles was being widely lambasted for being unfaithful to his wife, who was then given the cold shoulder by the family, much to the disgust of most. But worst of all in my opinion was a television documentary screened the day before the coronation which seemed to be nothing more than a PR exercise to finally excise any good memories of Diana. Why for example at this time would an old protection officer suddenly claim that it was her that first cheated and not the other way around? It was a very cheap shot, especially given that the person in question can no longer defend herself. But royalty of course can do no wrong, really?
Paul Beck, West Harbour.
Joy sticks
Bruce Robertson (NZ Herald, May 9) calls those against vaping “killjoys”. The literature concerning the dangers includes lung and other organ damage, breathing problems, addiction, and more. People tend to think of vaping as “safer” than smoking, but it’s not safe. Vaping can make you more likely to get asthma and other lung conditions. It can make your existing asthma worse. Vapes use diacetyl, a chemical used in some flavourings, which can cause bronchiolitis obliterans (“popcorn lung”). Bronchiolitis obliterans causes permanent scarring in your lungs. In addition to your lungs, nicotine and other substances in e-liquid can hurt your heart and brain. It is widely known nicotine can hurt brain development, raise blood pressure and narrow arteries. EVALI (e-cigarette, or vaping, product use associated lung injury) is a serious lung condition that gives you symptoms like coughing, shortness of breath and chest pain. EVALI can be fatal. Some ingredients in e-liquids are also known to cause cancer. Not anything to be joyful about is there?
Mark Young, Ōrewa.
Host responsibility
Did Mani Dunlop - despite her undoubted abilities - seriously think that a responsible media organisation would hire her to co-host a programme whose main brief includes asking hard questions of current politicians, when her partner, Kiri Allan, is one of those very politicians, and a senior minister to boot? Even if Dunlop was never delegated to personally interview Allan, one can imagine the frisson in the studio should her co-host choose to give the minister a vigorous grilling over any particular matter. Or for that matter, any member of her partner’s political party at all, which of course in this case is the Government itself. If, despite this, Dunlop considered herself an appropriate candidate for the job, then it displays a naivete and serious lack of judgement that was best exposed before she was permanently entrusted with the microphone in such a pivotal media position, and also questions the judgement of Minister Allan herself in her public support of Dunlop.
Frank Greenall, Whanganui.
Roadside assist
Our car simply died mid-morning on Friday, May 5, half on the verge and half on the road at an overtaking lane between Wellsford and Whangārei. The traffic roared past. The AA was very busy, so we were trapped there, in often driving rain and poor visibility, for nearly three hours. Some way to spend a wedding anniversary. A variety of people stopped, putting themselves at some risk, to offer help. Trying to start our car. No luck. Offering us lifts - but with the AA on call, we did not think it right to leave. One ute driver with a lovely little dog generously brought us coffee and sandwiches from a local cafe. One bearded, Māori guy offered us some of his kai. Another, a lorry driver, offered to tow us to a safer part of the road. When the AA tow-truck arrived, the driver could not have been more sympathetic or friendly and helpful. To all of them, and I hope some of them might see this letter, we send our gratitude. It makes up proud to be Kiwis and share this kind of community spirit. Thanks, all of you.
David and Valerie Townsend, Miramar.
Reviving rugby
Wayne Smith and Gregor Paul are correct on Super Rugby Pacific (NZ Herald, May 8). The rules (and one Australian referee) need an overhaul. I am a keen follower but now watch 12 minutes of highlights on SKY GO from the “lesser games” to see if I want to watch the longer versions – even then I fast forward to the action. The best rugby is the Heineken Cup Championship. The final on May 21 between Irish team Leinster and French team La Rochelle will be a highlight. I picked the Chiefs to cruise to the Super Rugby Pacific title at the beginning of the season - best coach and best player combination given the Crusaders’ injury list. The best rugby worldwide is the Six Nations. It seems the lesson is fewer teams, not more, which Super Rugby got wrong under Andy Marinos’ damaging expansion from 2016. For 2026, NZ Rugby would benefit from the current six NZ Super Rugby Pacific teams playing each other home and away; the six Australian teams, the same, with the top two teams from each in a semifinal, followed by a final. A maximum 12 games instead of current 17. Fewer games but definitely more supporter interest and probably no reason to rest representative players.
Gary Carter, Gulf Harbour.
Party lines
On reading the Letters to the Editor each day, it seems clear that most of the criticisms and praise for parliamentarians and their colleagues come from those supporting their own party come hell or high water, regardless of whether the parties they oppose come up with good ideas to solve any particular problem. All parties come up with some good suggestions from time to time and it is a shame that these cannot be accepted by those in opposition for the benefit of us all, rather than reject them because they didn’t come up with them in the first place.
Alan Walker, St Heliers.
Change course
The Minister of Transport accused the National Party of not taking climate change seriously enough, but the comments seem hypocritical given that the Labour Party’s proposed light rail and road tunnels will generate large amounts of CO2 emissions during their long construction period. The current climate emergency requires urgent reduction of greenhouse gases to prevent natural feedback loops that could be catastrophic. Instead, the Government should focus on heavy rail from Wiri to Ōnehunga via the airport, surface light rail on Dominion and Sandringham roads to connect with the proposed Avondale to Southdown railway (with an airport connection at Ōnehunga), and a second harbour bridge for heavy rail, buses, and trucks. Light rail to Takapuna will not cater for the 130,000-200,000 extra people expected north of there in about 20 years, but heavy rail could be extended to Ōrewa. It is time for the minister to reconsider his Auckland Transport plans.
Niall Robertson, chair, Public Transport Users Association
On Warriors
Since the Warriors’ first game, every marginal decision by Australian referees has gone against them. Bruce Tubb, Devonport.
NRL referees considering legal action following cheating accusations would have to prove they weren’t and, given their history of decisions involving the Warriors, they would probably fail. Steve Dransfield, Karori.
On super
Surely Max Rashbrooke (NZH, May 8) does not expect all wealthy superannuitants to forgo the universal entitlement to give to charity instead? Shamubeel Eaqub’s suggestion to means test super seems more sensible. Chris Prudence, Remuera.
On co-governance
I wonder whether we will ever see co-governance within Te Pāti Māori. Peter D Graham, Helensville.
On education
Gary Hollis is quite correct about university fees and the unreachable goal of higher education but mentioned politicians and higher education in the same paragraph. This correlation is without evidence. Mark Lewis-Wilson, Mangonui.
On smoking
I’m so glad a terrible fit of coughing and a headache followed one puff on my first - and last - cigarette at 19. Pamela Russell, Ōrākei.
On Hipkins
Has Chippy pinched Phil Goff’s grin? Robert Reece, Ōpito Bay.
Simon Wilson: Tax avoidance is the ram-raiding of the uber-rich
I have not heard that IRD actually found evidence of underpaid or evaded tax on taxable income. Rather, it seems they compared apples and lamp posts - tax paid by some people on their taxable income only with tax paid by other people on their taxable income, plus an amount calculated by IRD which they called “economic” income, but which is not and never has been taxable income in New Zealand. In fact, most people wouldn’t call it income at all. So really, all the report proved is that if you keep the numerator the same and make the denominator bigger, the percentage goes down. A primary school maths class knows that. Gillian M.
The so-called review or investigation got the result it intended. It did not cover all aspects. Ian U.
What is your “fair share” of someone else’s money? And how is it “fair” that half of NZ pays no net tax? The word “fair” must mean something different to you. The only fair form of taxation is a universally applied flat rate. Marcus A.
Don’t forget it is this Labour Government and in particular its previous leader that refused to introduce a capital gains tax - so you know who to blame. Also, unless you are taxing unrealised gains, not a lot will change for those at the top of the wealth scale. Paul H.
Myself and hubby are in the top tax bracket and agree it’s time we paid our fair share, we have three houses and it’s time to pay a CGT. Baylee N.
Seems that Niue and the Cook Islands would be the main beneficiaries, by turning themselves into offshore tax havens. The likes of Jersey, Guernsey and the IoM really got a boost in the 1970s when Harold Wilson was elected in the UK. Steve N.
Dedicated search finds puppy after crash.