Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Avoiding the taxman http://www.tvhe.co.nz/2008/03/09/avoiding-the-taxman/ The Visible Hand in Economics Mon, 10 Mar 2008 01:14:43 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: CPW http://www.tvhe.co.nz/2008/03/09/avoiding-the-taxman/#comment-1052 Mon, 10 Mar 2008 01:14:43 +0000 http://tvhe.co.nz/2008/03/09/avoiding-the-taxman/#comment-1052 Yeah, IRD data shows definite spikes at 38k and 60k. Plus trust income has been growing rapidly. I don’t think that is strictly tax evasion however (if they could prove it was illegal, IRD would challenge it).

As Mankiw points out, inelastic labour supply doesn’t necessarily mean that “efficiency gains are minimal at best”.

For what it’s worth, I estimate a revenue-neutral flat tax rate to be around 24% (assuming there are no dynamic implications). Which would be a tax increase for anyone earning less than 58,000.

]]> By: Owen http://www.tvhe.co.nz/2008/03/09/avoiding-the-taxman/#comment-1051 Sun, 09 Mar 2008 21:54:16 +0000 http://tvhe.co.nz/2008/03/09/avoiding-the-taxman/#comment-1051 The graph that I think the RBNZ has of income vs tax with the spike at 60k would indicate there is a more evasion going on than you might think..

I personally would like to earn more and be productive, but faced with a marginal tax rate of 49% (top tax plus student loan) its hardly worth the effort.

A flat(er) tax is fairer and would go along way to improving the productivity of NZ, which would in turn increase tax revenues which you could then redistribute if you felt that was the best way to help the poor, note: it is not in my opinion.

]]>