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Comments on: GST does increase the incentive to save http://www.tvhe.co.nz/2010/06/01/gst-saving/ The Visible Hand in Economics Tue, 01 Jun 2010 09:17:25 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: The Acai Berry Is Taken By High Profile Celebrities. | Nutrition Facts http://www.tvhe.co.nz/2010/06/01/gst-saving/#comment-26131 Tue, 01 Jun 2010 09:17:25 +0000 http://www.tvhe.co.nz/?p=5076#comment-26131 […] TVHE » GST does increase the incentive to save […]

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By: Tweets that mention TVHE » GST does increase the incentive to save -- Topsy.com http://www.tvhe.co.nz/2010/06/01/gst-saving/#comment-26124 Tue, 01 Jun 2010 02:52:11 +0000 http://www.tvhe.co.nz/?p=5076#comment-26124 […] This post was mentioned on Twitter by bernardchickey, Matt Nolan. Matt Nolan said: GST and the incentive to save: http://bit.ly/9hRQzX […]

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By: Matt Nolan http://www.tvhe.co.nz/2010/06/01/gst-saving/#comment-26123 Tue, 01 Jun 2010 02:44:16 +0000 http://www.tvhe.co.nz/?p=5076#comment-26123 @Bernard Hickey

I’ve heard Andrew Coleman suggest that before – it is justifiable.

http://www.tvhe.co.nz/2009/07/20/capital-gains-tax-an-issue-of-structure-not-boom-and-bust/comment-page-1/#comment-20426

Ultimately, I would need to understand exactly what we are targeting from policy before I would support any policy.

So I think we need to think about exactly how we tax capital in the first place. We should probably make sure we are treating all asset classes equally – unless we have a good reason not to. Given that, it is possible that having no tax on the inflation component of interest is the way to go.

We may want to treat consumption now the same as consumption in the future – in that case we might want to scrap the tax on interest completely.

The tax working group did an excellent job – but I think there are dynamic issues such as these that could have been covered off in a little more detail.

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By: Bernard Hickey http://www.tvhe.co.nz/2010/06/01/gst-saving/#comment-26122 Tue, 01 Jun 2010 02:30:58 +0000 http://www.tvhe.co.nz/?p=5076#comment-26122 Matt,

Ta. What do you think of the idea of a tax break on the inflation component of interest returns on savings?

cheers
Bernard

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