Oh thanks you we do, Sire….for leaving us a sheep from our flock…
Posted by Leeb - 06/07/09 at 09:07:42 pmOn the return daily commute today, my partner had a rant. She ranted on for at least 25 minutes.
Today she [her business www.vaultconsulting.co.nz] received a bill from the lovely guys at the IRD for money she might make in the future based on what the business has earned so far. Provisional Tax.
So let me get this straight and please comment if I am wrong about this - I would love to broaden my financial savvy….so
- She takes a step out of the comfy norm, risking everything to set up a small company which may or may not work in the current [engineered?] financial climate
- Now as well as the increase risk and workload, there is supposed to be rewards right?
- So why now does the small business owner have to pay PAYE [income tax] and Provisional tax? Surely it would be better served to let the small business keep this cashflow intact [lets say to $100,000K non taxable] so she can emply more staff, produce better products through R&D, Marketing etc and put MASSIVE tax on things like Utes/cars which everyone knows are tax dodges….
In fact wouldn’t a better policy be to COMPLETELY scrap the income and provisional taxes? Ah but how will we fund out teachers? Cops? lolly pop ladies [what I hear you cry...]
Simple. We make GST/VAT/whatever you call it 35% [figure example only - pulled out of my proverbial]. This way low income earners and non-consumers would have more cash to invest in the ailing institutions and charities etc and we would have a User Pays GST system. The more you buy with your now huge cash reserves the more you pay in the hidden tax. Simple isn’t it?
Small business should be left alone to grow, the guys who go it alone and risk everything - don’t really need the slap in the face when they are trying to get ahead….its hard enough already!
Democracy surely means free market business. If we wanted politicians to dictate what goods are produced and when consumed - we could have stuck with the Nazi Party! If it really is a democracy we operate under the guise of - then surely we can put through a bill for the abolishment of Income Tax.
Gone are the days of the King and his cronies helping themselves to our produce and leaving little behind.
Lets have a Taxation referendum - see what people think.
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