Re: How Hard Is It To Save?

Postby DropKick on Thu 16/Jul/09 10:43pm

Henry Dorset Case wrote:
ThingOne wrote:
iodi wrote:
xcmtb wrote:They're shitting us right?

No, unfortunately not. According to the 2009 budget, 58% of people earn less than $30k pa. The primary reason most people don't save much, or at all, is that they don't have any money.


Those numbers will be shite, as a lot of high earners who run through companies only pay themselves small salaries and pocket the rest via dividends etc through trusts and the like


Um yes a lot of people do have tax effective structures. but those structures still involve (if you pay money out) tax being paid. Like for instance why would anyone want to earn more than $60k/year, because then for every dollar over that you pay 39c of it in tax. Yet the company tax rate is 30% and the trust tax rate capped at 33%.

Roger douglas had the right idea all those years ago: flat tax, 20 or 25% end of story.
Couple of orthopaedic surgeons in chch were paying themselves f*ck all and running the rest thru their private companies. IRD tried to do them, they ended up taking ird to court and winning :D
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Re: How Hard Is It To Save?

Postby j2hyde on Thu 16/Jul/09 10:59pm

Good for them, if they gave their money to IRD it would just go to all those poor folk who squandered the opportunities presented by the subsidised first class education readily available in this country.
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Re: How Hard Is It To Save?

Postby Scotty on Fri 17/Jul/09 7:21am

..and people wonder why I'm not that keen on the idea of having kids. :huh:
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Re: How Hard Is It To Save?

Postby Nick_K on Fri 17/Jul/09 7:32am

j2hyde wrote:Good for them, if they gave their money to IRD it would just go to all those poor folk who squandered the opportunities presented by the subsidised first class education readily available in this country.


Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:


Because they might end supporting bs right wing rhetoric like j2hyde?
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Re: How Hard Is It To Save?

Postby ThingOne on Fri 17/Jul/09 7:33am

Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:


Rule 1.. Dont let money decide your life.

You cant let money decide whether or not to have a family, its just money.
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Re: How Hard Is It To Save?

Postby thorg on Fri 17/Jul/09 7:42am

ThingOne wrote:
Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:


Rule 1.. Dont let money decide your life.

You cant let money decide whether or not to have a family, its just money.
Be far easier to just let Celia decide :)

*runs and hides*
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Re: How Hard Is It To Save?

Postby Spyder on Fri 17/Jul/09 7:46am

DropKick wrote:
Henry Dorset Case wrote:Um yes a lot of people do have tax effective structures. but those structures still involve (if you pay money out) tax being paid. Like for instance why would anyone want to earn more than $60k/year, because then for every dollar over that you pay 39c of it in tax. Yet the company tax rate is 30% and the trust tax rate capped at 33%.

Roger douglas had the right idea all those years ago: flat tax, 20 or 25% end of story.
Couple of orthopaedic surgeons in chch were paying themselves f*ck all and running the rest thru their private companies. IRD tried to do them, they ended up taking ird to court and winning :D


I thought that the IRD applied a "reasonable" test to these sorts of things. If the surgeons where declaring their salaries from their primary jobs as being $30k, that would probably be deemed not to be reasonable. If they declared $100k and the balance of the $1.x m ran through the companies (at 30% tax) then that probably would. Similar story for sole traders who get their partners to do the accounts. Depending on the complexity, $60k (ie maximum income splitting benefit) might be OK, if it's just a sham they won't like it.
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Re: How Hard Is It To Save?

Postby DropKick on Fri 17/Jul/09 8:16am

Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:



But you could call your first born "Cobra" :thumbsup:
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Re: How Hard Is It To Save?

Postby Conners on Fri 17/Jul/09 12:59pm

ThingOne wrote:
Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:


Rule 1.. Dont let money decide your life.

You cant let money decide whether or not to have a family, its just money.

Such a good point. I often think "there are people with far less money than us out there who manage to do a fine job of raising their families".

Sure, your priorities would have to change, but so would a lot of things :lol:
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Re: How Hard Is It To Save?

Postby way_downsouth on Fri 17/Jul/09 1:06pm

Conners wrote:
ThingOne wrote:
Scotty wrote:..and people wonder why I'm not that keen on the idea of having kids. :huh:


Rule 1.. Dont let money decide your life.

You cant let money decide whether or not to have a family, its just money.

Such a good point. I often think "there are people with far less money than us out there who manage to do a fine job of raising their families".

Sure, your priorities would have to change, but so would a lot of things :lol:


Very good point Connors and Thingone. It is just a case of what is important to you and your choices.
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Re: How Hard Is It To Save?

Postby CrashTestDummy on Fri 17/Jul/09 10:46pm

iodi wrote:
xcmtb wrote:They're shitting us right?

No, unfortunately not. According to the 2009 budget, 58% of people earn less than $30k pa. The primary reason most people don't save much, or at all, is that they don't have any money.



It's interesting that the 46,000 in NZ who earn over $150k, pay almost the same amount of income tax combined, than the 1,600,000 who earn $30k or under!! :eh:
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Re: How Hard Is It To Save?

Postby JaredTheAmazing on Sat 18/Jul/09 9:10am

Jesus saves. badom-tschhh
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