tag:blogger.com,1999:blog-2830084253401570472.post1671271215843119301..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: Morgan and Guthrie’s Modest Taxation ProposalEric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2830084253401570472.post-52590997653735524362012-02-10T17:57:23.420+13:002012-02-10T17:57:23.420+13:00@peterquixote: I agree that the CCT is DOA. You ar...@peterquixote: I agree that the CCT is DOA. You are correct; Morgan spends so much time holidaying in the Third World that he unthinkingly compares us to what he sees there, and thus indulges in a bit of triumphalism. You and I understand that we New Zealanders compare our standard of living to that of Oz, Canada, and even the USA -- in which case there is less to crow about.<br /><br />Subjecting a family with a modest income to a flat income tax is more defensible than you seem to think. A scenario. Trevor works 2000 hours/year at $15/hour for an annual wage of $30K. His annual wage after the 30% flat income tax is 30K(1-0.3) = 21K. Trevor lives with Gina, the mother of his kids. The Crown pays Trevor and Gina a UBI of 11K apiece, so that their total annual disposable income is 21K + 2(11K) = 43K, which is in the ball park of what their household income in our real world with its WFF and the Accommodation Supplement.<br /><br />@Seamus: the crucial problem posed by the UBI is a possible negative income effect on the labour supply. The negative substitution effect on labour supply arising from a 30% flat rate could also be nontrivial. These negative effects could be larger for those modestly endowed in human capital.philip meguirenoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-29522285527822774412011-09-08T19:14:38.498+12:002011-09-08T19:14:38.498+12:00Gareth is getting loose with himself and starting...Gareth is getting loose with himself and starting to fire from the hip. <br />His proposals are politically and socially unsound.<br />The only way to introduce capital property tax, is a capital GAINS tax based on the difference between the cost of property and the sale price. That is the only equitable and rational capital tax on property.No NZ Government will not introduce capital tax on family property under 2 million in our lifetime. <br />A 30% Income tax for people at the level of say $20,000 income is ludicrous.<br />This nonsense is what happens to wealthy people, and if Gareth thinks <br /> “[w]e are a rich society” in New Zealand, who is he comparing us to.<br />Thailand? Bangladesh?<br /><br />Does anybody remember when Roger Douglas told us GST would replace Income tax entirely.peterquixotehttps://www.blogger.com/profile/15873112816453062068noreply@blogger.com