Lindsay Mitchell: Heading in the right direction

Tuesday, April 03, 2007

Not quite an adoption of flat tax but a move in the right direction.

Sweden finally scraps its 'wealth tax'

Anonymous said...: Interesting to see you support flat tax systems. My understanding is that while they vary considerably, the impact on their introduction is as follows:

lower income - now pay less tax
the rich - pay about the same as before
middle income earners - pay more.
Do you broadly support these outcomes?
(My sources on this are from articles in the Economist.; 4:18 AM
Lindsay Mitchell said...: If a tax rate goes down yet people are paying more it must be because they are getting richer. Yes I support everybody getting wealthier.

Perhaps too if people think that the tax system is fairer there is less tax avoidance. I support a fairer system that will encourage wealth creation which benefits everybody.

I have just posted the results of decades of progressive taxation in this country.; 7:03 AM
Lawrence of Otago said...: For what it is worth I see a "flat income tax" as an essential step prior to the abolition of income tax.

Which in itself is a prerequisite before the abolition of the consumption taxes.

"Michael from ok" NZ crrently has a flat (12.5%) consumption tax regime.

SG; 12:09 PM
Anonymous said...: Not in NZ with the introduction of a new tax from 1 April 2007 on overseas investments through managed funds.

5% tax regardless of capital value adjustments and dividend payments.

This tax has been introduced before the Kiwi Super scheme starts.; 1:40 PM

Lindsay Mitchell