Posts by Rich of Observationz
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because businesses running a total reinvestment strategy can make endless losses, whilst becoming enormous. Which is not bad at all, that’s growth by any way of calculating it, and they will eventually have to turn a profit, at which point they should be paying a ton of tax
Like Myspace, you mean?
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Hard News: A Capital Idea?, in reply to Matthew Poole,
tax basis of large corporations
Is what I said. Not new businesses. And one could easily envisage an exception for startups of scale, and one for customer/employee cooperatives, which is how enterprises *should* be structured.
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The more I read these threads, the more I realise my profound financial naivete. That would never have occurred to me.
It doesn't need to be a conscious thing.
If you have any sort of land intensive business, like a farm or rental property, or even if you buy a house rather than rent it, you're taking a punt on a capital gain. Almost no NZ farms make enough profit to pay a mortgage on the land. If you buy a house, you pay a 30-50% premium over rental, so you have to make a gain not to lose.
It's a backwards way to have things.
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Hard News: A Capital Idea?, in reply to Craig Ranapia,
end the corporate culture of tax avoidance
They need to change and simplify the tax basis of large corporations. Move to a structure where the average profit for each industry is designated (e.g. 25% for telecoms) and applied to the firms sales in NZ + exports from NZ. That's the minimum taxable income, even if they purport to have made a loss.
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urban legend has it
I have a bunch of references on how that happened.
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Hard News: A Capital Idea?, in reply to Sacha,
I’m bored of that
Bored with. Not “bored of”. Why should we take economic advice from someone with all the literacy of Vicky Pollard? Also, how much “talent” does it take to rent a house out?
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Hard News: A Capital Idea?, in reply to Matthew Poole,
Apologies for questioning your universal knowledge.
BTW, I'm having a few issues understanding the nature of the Higgs Boson - would you be able to provide explanations?
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If you want to deduct losses, you have to declare profits. If you don’t declare profits, you can’t deduct losses. Or expenses. There is no way to “play” at being a day trader and gain while losing money. If you’re not doing it as a business, the IRD doesn’t care.
I refer to those (a majority, I suspect) who embark on day trading to make money and fail to do so. They get a tax loss (as a business definitely. as an individual I'm not sure, but NZ doesn't ringfence individual business activities like the UK does, for instance).
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In the unlikely event anyone actually makes money at day trading of currencies or stocks in NZ, it would be taxable. But those few individuals probably just evade tax.
(Also, I guess losses from such activities are tax deductible. It would be better if the IRD categorised it as a hobby and avoided the tax loss).
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I doubt rents will increase. The number of houses in NZ won't change, nor will the ability of renters to pay. Property prices *are* likely to fall (if the tax is effective) which will increase rental yields. At the end of the day, NZ will be spending less on a place to live, which can only be a good thing.