Latest / Best of Business / Jenee Tibshraeny: NZ Herald Wellington business editor on the IRD saying taxes need to rise

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Jenee Tibshraeny: NZ Herald Wellington business editor on the IRD saying taxes need to rise · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks be follow
• 0:12
  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Now. Inland Revenue says taxes need to rise, and it
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  Speaker 2: favors a higher GST rate and a capital gains tax.
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  Speaker 2: The Herald's Wellington business editor, Genative Traine, has been looking
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  Speaker 2: into this and is with us now Higenate, Hey, heathern.
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  Speaker 2: Have they said how high they want GST to go?
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  Speaker 3: They haven't said that, but what they have said is
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  Speaker 3: they reckon the tax system needs to be designed in
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  Speaker 3: such a way that it makes it easier for governments
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  Speaker 3: to lift tax rates should governments need more money. So
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  Speaker 3: Inland Revenue and the Treasury have been ringing the alarm
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  Speaker 3: bells over the fact our population is aging. We basically
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  Speaker 3: aren't projected to have enough tax coming in to pay
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  Speaker 3: for all the looming costs around healthcare, subperanuation, that type
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  Speaker 3: of thing. So they say that they assume that in
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  Speaker 3: the future governments will fix this. Government haven't been fixing it,
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  Speaker 3: but they reckon at some point they will have to
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  Speaker 3: fix it. But they don't know if governments will fix
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  Speaker 3: it by cutting spending or by hiking taxes. So they say,
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  Speaker 3: because we don't know what the future holds, we should
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  Speaker 3: set up the tax system in such a way that
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  Speaker 3: we can hike rates should it be required. So that's
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  Speaker 3: why they haven't said, you know, how much they think
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  Speaker 3: GCT should be increased by. But they do say if
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  Speaker 3: governments do that, they recommend offering a cash transfer to
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  Speaker 3: low income earners because of course, you know, if GST
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  Speaker 3: rate goes up, that really hits low income earners disproportionately hard.
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  Speaker 2: So how would this cash transfer work.
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  Speaker 3: So it could be like a tax rebate or something
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  Speaker 3: like that at different levels.
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  Speaker 1: You know.
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  Speaker 3: Basically increasing the GST rate is regressive, so they don't
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  Speaker 3: want that. But they think that if they you know,
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  Speaker 3: if we get to the point we have to increase GEST,
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  Speaker 3: they transfer some money back, then then we can also
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  Speaker 3: have a capital gains tax. So that's the other one
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  Speaker 3: that that they're flagged now I mean controversial.
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  Speaker 2: Yes, so i ID wants a treasury wants of the
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  Speaker 2: problem is, of course, the politicians are the gatekeepers and
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  Speaker 2: we're in the cost of living crisis. Ain't gonna happen,
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  Speaker 2: is it?
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  Speaker 3: Well, you know that's the thing. The economy is on
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  Speaker 3: shaky ground. We're truly looking at a stagflation environment. Any
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  Speaker 3: politician coming out now to say the hiking taxes is literally,
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  Speaker 3: you know, secured an absolute fail at the election. You know,
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  Speaker 3: people will say, well, Labour's keen on the capital gains tax.
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  Speaker 3: That's true, but Labour's capital gains tax is actually pretty narrow.
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  Speaker 3: They only wanted to apply, you know, two houses sold
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  Speaker 3: after they were they they've been bought after a certain date,
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  Speaker 3: you know, so that will really limit the revenue that
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  Speaker 3: would be generated. And you know, due to the narrowness
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  Speaker 3: of it, and then revenue saying we actually need more
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  Speaker 3: tax income and CGT could be a good option, but
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  Speaker 3: it would need to be broader, you know, So I
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  Speaker 3: guess and land revenue and the Treasury I'm looking at
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  Speaker 3: looking what they're writing, and it is at a completely
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  Speaker 3: different level to what the politicians are saying. So either
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  Speaker 3: our economic stewards are completely off track or the politicians
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  Speaker 3: are completely off track. But there is no one political
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  Speaker 3: party that is saying we're going to tax you more.
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  Speaker 3: We're going to give you less for that tax because
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  Speaker 3: we need to save money for the future. And that
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  Speaker 3: is the message that is resonating quite strongly from the
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  Speaker 3: Treasury and their revenue.
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  Speaker 2: Interesting. Jennay, thanks very much, appreciate it as always. Jenative Trainey,
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  Speaker 2: The Herald's Wellington Business Editor. It's twenty away from sex
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  Speaker 2: Lord out by an entire hour, twenty away from seven
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  Speaker 2: try that one on, you do you know what? They
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  Speaker 2: can take a running jump, can't they? Ird and Treasury
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  Speaker 2: can take a running jump? Because you know what would
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  Speaker 2: be a better idea than raising taxes, hiking up the GST,
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  Speaker 2: hiking up the capital games. What would be a better
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  Speaker 2: idea is if we cut spending, like, for example, the
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  Speaker 2: thing we've been talking about on this show, and last
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  Speaker 2: the three hundred thousand dollars given to some project to
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  Speaker 2: watch kids paint pictures text on that evening, Heather, thanks
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  Speaker 2: for trying to get MB and Auckland UNI on to
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  Speaker 2: tell us how our three hundred thousand dollars was wisely spent.
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  Speaker 2: Today I also got to see the photo of the
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  Speaker 2: three by two meter Kumita patch that we all paid
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  Speaker 2: twenty five thousand to twenty five thousand dollars per square
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  Speaker 2: meter for. Maybe the head hon show Nikola Willis can
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  Speaker 2: tell us how this is good use of taxpayers dollars great,
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  Speaker 2: quite right, So before they come at us asking for
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  Speaker 2: a little bit more of the old goods and services
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  Speaker 2: tax id go, how many koumra patches you paid for today, mate?
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  Speaker 2: Just out of interest? How many kids did we get
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  Speaker 2: to do the finger painting of the trees? Yeah? Did we?
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  Speaker 2: Did we pay for any of those whales songs that
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  Speaker 2: we needed to play to the trees to see if
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  Speaker 2: it helped the trees? Yeah? How about you start cutting
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  Speaker 2: the wasteful spending on that and then we can talk
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  Speaker 2: about maybe raising taxes. Now, we'll just put that one away,
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  Speaker 2: because that's just made us disproportionately angry that people could
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  Speaker 2: be this stupid. I've just you know what, can I
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  Speaker 2: just say? I'm always surprised that this beautiful country has
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  Speaker 2: created enough morons, Like somehow we have managed to create
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  Speaker 2: enough morons to actually, through the whole food chain, managed
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  Speaker 2: to make that payment possible. Don't you think that's a
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  Speaker 2: remarkable thing? Like, first of all, there's the moron who
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  Speaker 2: was like, you know what I want to do. I
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  Speaker 2: want money to watch kids paint pictures of trees and
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  Speaker 2: see if that helps with Cowie die back, I know
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  Speaker 2: that's what I am. That moron. That moron was born
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  Speaker 2: and came up with that idea. Then you had the
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  Speaker 2: moron that's their boss, who was like, do you know what,
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  Speaker 2: that's a good idea, Actually you should actually apply for
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  Speaker 2: that money. That more on too. Then the moron whose
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  Speaker 2: desk that arrived at at MB, where they were like, look, hey,
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  Speaker 2: there's a request for some money to get the kids
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  Speaker 2: to paint the trees. That moron who went, yeah, that's
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  Speaker 2: a great idea. Tick. There's a whole list. And by
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  Speaker 2: the way, it won't be that efficient, Like there will
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  Speaker 2: be at least about four or five people at the
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  Speaker 2: University of All and likely about seven at MB. So
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  Speaker 2: there's at least a dozen morons that we have somehow
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  Speaker 2: managed to breed in this country who are stupid enough
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  Speaker 2: to think that was a good idea. Remarkable, remarkable anyway,
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  Speaker 2: from stupid ideas to great ideas. There is a proposal
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  Speaker 2: to allow pharmacists to hand out more kids medicines without
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  Speaker 2: needing to go to the GP. And I am on
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  Speaker 2: board with this because we need to stop the GPS
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  Speaker 2: being the only gatekeepers when things are really obvious and
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  Speaker 2: you could go in and go look, there's a cut
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  Speaker 2: it's infected. Oh, here's some antiboter crem Like I'm not
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  Speaker 2: saying gps need to do you know what I mean?
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  Speaker 2: Like it's obvious you don't always need the GP to
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  Speaker 2: do that. Health New Zealand has come up with this proposal.
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  Speaker 2: So what it's considering is allowing the pharmacists to take
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  Speaker 2: a look at the kid and go, yep, this call.
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  Speaker 2: I'm going to give you some pamil for that, pamels, ibuprofens,
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  Speaker 2: oral rehydration. Common conditions like scabies, headlice, conjunctivitis. Can you
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  Speaker 2: actually believe that you have to go to the GP
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  Speaker 2: and go, yes, look look at that, Yes, that would
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  Speaker 2: be a case of head lice. Could you please give
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  Speaker 2: us something scription for that? One time? On the conjuncti visus?
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  Speaker 2: One time? It was a weekend. And doesn't it suck
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  Speaker 2: when the kids get sick at the weekend? Like that
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  Speaker 2: really rips Undery's a because it sucks all the time
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  Speaker 2: because you love them and you don't want them to
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  Speaker 2: get sick, But at the weekends it really sucks. And
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  Speaker 2: this one weekend, the little one who would have been
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  Speaker 2: I reckon, I reckon less than a year at this stage,
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  Speaker 2: maybe ten months she came down with pussy eyes. There
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  Speaker 2: is clearly a case of conjunct conjunctivinus. Right, so passy eyes,
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  Speaker 2: both eyes, which means it's now it's bacterial. So and
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  Speaker 2: I as a Saturday, what do you do? You can't
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  Speaker 2: go to the GP because the gps have weekends, don't they.
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  Speaker 2: So went to the emergency sat in the not not
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  Speaker 2: starship where I'm not that kind of a parent, went
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  Speaker 2: till like one of the White Cross ones or whatever
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  Speaker 2: that you have to pay for. So went and sat
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  Speaker 2: there probably three hours, probably four hours on a Saturday afternoon,
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  Speaker 2: just so the GP could go, Oh, yes, yes, missus
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  Speaker 2: duplissy ellen, you are in fact correct, this would be
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  Speaker 2: a case of conjunctividers. Let me give you some eye drops. Yes,
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  Speaker 2: those would be the eye drops. I went to the
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  Speaker 2: pharmacy for in the afternoon and asked if they could
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  Speaker 2: just give them to me. But I had to go
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  Speaker 2: through the harsh muzzle of three hours or four hours
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  Speaker 2: and waste the doctor's time because they didn't need to
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  Speaker 2: do that. And now, if this proposal goes through, you
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  Speaker 2: don't have to do that. Isn't that brilliant? Oh and
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  Speaker 2: for the adults, also very common uncomplicated UTIs they'll be
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  Speaker 2: able to do with that in emergency birth control as
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  Speaker 2: well as to be able to give it to you.
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  Speaker 2: How good is How good is it that the pharmacists
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  Speaker 2: can be adults?
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