Tax Freedom Day

June 4th, 2014 at 2:59 pm by David Farrar

The Taxpayers Union broke the good yet sad news:

Congratulations New Zealand, as at 10.04am today you are working for yourself. However, the fact the Government accounts for all the money earned until today means it is unlikely New Zealanders will be celebrating. The government has effectively sucked up all of our earnings for the first 154 days of the year.

OECD figures put the current burden of government in New Zealand as 42.2% of GDP. This is larger than the 30% recently quoted by Finance Minister Bill English because it also takes into account crown entities, such as SOEs as well as local government. …

We need to aspire to countries like South Korea, Switzerland and Australia. this year fell on 21 April in South Korea, 2 May in Switzerland and 11 May in Australia.

March would be my ideal month for freedom day, but I’ll settle for April.

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33 Responses to “Tax Freedom Day”

  1. straya (85 comments) says:

    The tax year in Australia runs from 1 July to 30 June.

    So I doubt that tax free day was 11 May.

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  2. mikenmild (11,742 comments) says:

    What reforms would you like to see, DPF, to achieve a March tax freedom date. I take it you feel the government has not been ambitious enough.

    [DPF: A commitment to spending rising no more than inflation and population growth would get us there]

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  3. dirty harry (514 comments) says:

    If the filthy gweens get in tax freedom day will end up being sometime in October.

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  4. burt (8,316 comments) says:

    Tax freedom day in NZ should be 30th March, 1 day a year working for yourself and the rest providing money for Dear Leader to distribute as he/she requires to stay in office.

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  5. burt (8,316 comments) says:

    mikenmild

    Sorry, my previous comment was made with my “socialist – entitlement to other peoples money hat on” – sorry to take your position.

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  6. burt (8,316 comments) says:

    DPF

    Unless I’m mistaken, tax freedom day has extended under National compared to Labour ? Is this correct ?

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  7. Meatloaf (239 comments) says:

    Ok guys, now for the serious stuff. Before the great depression income tax didn’t exist. After the great depression a ‘new deal’ was announced. That whenever you were in need, the government would help out, but it wasn’t a gift. It was a loan. The original social security act, meant when you receive something like public education or welfare, that goes in one side of the ledger. When you paid it back with income tax, that reduced what you owed by going in the other side of the ledger.

    Suppose you receive $50,000 in public education, that would go in the right side of your ledger. Every year, that you earnt and paid income tax, the other side of the ledger increased. So 20 years later, you would have contributed as much as you had received. So then after this for every dollar you paid, it continued to go into the other side of the ledger, so that when you retired, the government would just fork out what you had paid into your social security account.

    But then they changed it to the social security act of the 1960s. Anyone could get assistance, provided they were willing to work. This has something to do with making way for the DPB. When they announced the DPB, they had to make sure that those who were raising a child on their own, fit into a different set of rules. I remember reading this in the world book encyclopedia 1991 edition, about how people used to have a social security account, but in the 1960s this all changed.

    So how bout we get rid of the DPB, and go back to the way things used to be. And its the White Ribbon Society, who wants these DPB people to appear as the victims, and men as the violent heartless offenders. I say get rid of the White Ribbon Society, and go back to the way things used to be. People set-up trusts and money launder to avoid the system, and that’s why other people are paying more than they should. Going back to the old days would fix the problem. I say the White Ribbon Society doesn’t deserve charity status. Who’s with me on this?

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  8. Tarquin North (358 comments) says:

    Tax freedom day will happen when I’m pushing eighty. Must go, I have arrangements to meet!

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  9. Nigel Kearney (1,049 comments) says:

    >Unless I’m mistaken, tax freedom day has extended under National compared to Labour ? Is this correct ?

    I think that if you calculate on the same basis, it was also June 4 in 2008, the last year Labour was in office.

    But it increases when Labour is in power and doesn’t decrease under National so we are heading down a track that can only end with either a communist state or politicians’ heads on spikes.

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  10. dime (10,109 comments) says:

    Disgraceful.

    And while we have all been working our asses off, “angels” on the bene who can do no wrong have been hanging out at the beach, drinking piss, sleeping in on cold winters mornings.

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  11. Meatloaf (239 comments) says:

    That’s exactly what I’m saying. Get rid of the White Ribbon Society, then we can go back to the way things used to be. If your on a benefit, it cuts into your retirement. Then this would eliminate all these loophole people. If we do that, those who are working their asses off will at least get something for it. And those who are doing nothing useful, will change their attitude.

    But unfortunately this isn’t the case at the moment.

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  12. mikenmild (11,742 comments) says:

    What did the White Ribbon Society ever do to you? Did they stand up too much for victims of violence?

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  13. dirty harry (514 comments) says:

    Again , mikemilk shows his fucktardness…someone says black , milkmike says white. Very tiresome.

    Just cant help himself.

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  14. gump (1,661 comments) says:

    @dirty harry

    “Again , mikemilk shows his fucktardness…someone says black , milkmike says white. Very tiresome.”

    ———————

    Actually, the entire purpose of the White Ribbon Society is to stand up for victims of violence.

    http://www.whiteribbon.org.nz/

    I don’t know why anybody here would oppose it. It’s a mainstream organisation that receives funding from the Ministry of Health, Police, ACC, Ministry of Justice, Ministry of Education and Ministry of Social Development

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  15. slijmbal (1,236 comments) says:

    Rodney Hide used to do a press release about this and it used to be about May 20 ish in the mid 2000s (from memory).

    National need to stop the Keynesian approach they used to dampen the effects of the recession and move back to a classical Austrian economics approach – hopefully they will do so now.

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  16. Meatloaf (239 comments) says:

    mikenmild, in Auckland for two years straight, they have had signs implying that men are the violent problem to society. Every time I saw that I felt degraded for being a man. There website continued the defamation, that its men who are the violent offenders. Yet the police’s website says mind control is domestic violence. Belittling people, to get your way if in a relationship is violence according to police.

    But its harder to prove mental cruelty than physical violence. So this is why they get away with saying men are violent. I have been in so many relationships where the other person uses mind control, and I just pull out right there and then, and yet white ribbon goes on and on about men being a problem. They are guilty of using misleading conduct and discrimination and use charity status. If they weren’t a charity, I’d sue them for misleading conduct and discrimination and duress.

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  17. mikenmild (11,742 comments) says:

    Did you mean classical economics or Austrian economics? And why on Earth would you think the National Party would be even remotely interested in either of them?

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  18. stephieboy (3,400 comments) says:

    slijmbal , move back to a classical Austrian approach.? What is that precisely.?
    Recall also ACT is still languishing below 1%.

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  19. slijmbal (1,236 comments) says:

    @stephieboy

    lazy summarisation on my part but certainly a move away from the economics driven by the modern interpretation of Keynesian economics, which would be better summarised as socialist economics in my opinion. I admit to being a happy amateur in the field of economics but have been bootstrapping myself over the last few years.

    Austrian economics is driven more by individual behaviour and markets whereas the current interpretation of Keynesian and by implication Monetary economics is that the state can manage or limit the failures of the market (failures in this context being predominantly busts). This invariably leads to the state spending OPM. Despite there being evidence that they can at best either flatten the effects of lesser booms and busts or worse delay the inevitable and make it much worse in a major bust by prolonging the agony.

    Frankly, I just want the government to spend less of our money. I can make much better use of it.

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  20. mikenmild (11,742 comments) says:

    Austrian economics is driven by some half digested assumptions about human behaviour and a complete disdain for empirical evidence.

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  21. Miritu (30 comments) says:

    For more on Austrian economics see http://www.mises.org

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  22. Sir Cullen's Sidekick (895 comments) says:

    Well when DPF’s winter favourites Greens take over power, the tax freedom day will be 25th December. Merry Christmas Carbon Commissioner!!!

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  23. get a grip (10 comments) says:

    You mean that the 30% of those who pay taxes. What about the 70% who dont contribute any income taxes?
    They will never have a tax Freedom Day.
    By the way, just some reference to offset the BS higher amongst the comments about Income tax only starting in the depression !!!!!!!! Yea right…

    http://www.teara.govt.nz/en/taxes/page-2

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  24. stephieboy (3,400 comments) says:

    slijmbal, I would call it simplistic Libertarianism on your part and milkenmild has a good handle on it which underscores the human factor ( avarice, greed etc) completely destroying the Austrian schools highly presumptive case.
    The school like its Marxist counterpart only exists in the fairy realm of idealism and abstract theory.

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  25. chrisw76 (85 comments) says:

    I get including Local Government, but SOEs? So flying Air NZ or buying power through Meridian counts in the % of GDP? If true then this is a bit of a BS manipulation of numbers to overstate the case IMO.

    Cheers, Chris W.

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  26. rg (214 comments) says:

    You would have to vote ACT to get any reduction in tax, National and Labour spend like drunks, buying votes.

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  27. rg (214 comments) says:

    What reforms would you like to see, DPF, to achieve a March tax freedom date. I take it you feel the government has not been ambitious enough.

    [DPF: A commitment to spending rising no more than inflation and population growth would get us there]

    Welcome to the ACT Party David, that is their policy. It is about time you National Party fools realise that John Key is the best PM the Labour Party has ever had, and start voting for ACT.

    All National people want is to keep Labour out, one day they will realise that we have had a Labour govt all this time.

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  28. deadrightkev (526 comments) says:

    National, through the smiling Mr John Key has really proven to be the slick operator of a generation.

    It is a great pity that the majority of NZ is too apathetic to recognise what is being done to them financially, socially and racially.

    Then who do they have to turn to? It just gets worse.

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  29. hj (7,066 comments) says:

    Groups like this often have an ulterior motive: eg be efficient but hands off profits in the property sector. In other words a way of implementing Houston Chamber of Commerce rules?

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  30. hj (7,066 comments) says:

    I bet they don’t koutau the findings of the Tax Working Group (“that would hurt my fwends”)?
    The privatisation of politics
    http://www.angelfire.com/tx5/cven04/Fisher-Urban%20Policy%20in%20Houston.pdf

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  31. Nigel Kearney (1,049 comments) says:

    A commitment to spending rising no more than inflation and population growth would get us there

    It would only get us there if Labour commits to it as well. Which is never going to happen. A better way is for National to commit to a level of spending relative to a specific date, e.g. what we spent in the 2000-2001 year adjusted for inflation and population growth. And put that in their constitution and make all candidates pledge to stick to it.

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  32. tom hunter (5,086 comments) says:

    I did enjoy this story out of Austin, Texas, about home owners getting very upset about rising property taxes. For those who don’t know, Austin is the most left-wing part of Texas, filled with refugees from California.

    Unfortunately these refugees have not learned from their experience, as demonstrated by this sad but funny interview quote from one of the upset people:

    “It’s not because I don’t like paying taxes,” said Gardner, who attended both meetings. “I have voted for every park, every library, all the school improvements, for light rail, for anything that will make this city better. But now I can’t afford to live here anymore. I’ll protest my appraisal notice, but that’s not enough. Someone needs to step in and address the big picture.”

    What she means is that someone else needs to be found to pay for all these wonderful things she’s voted for.

    Note also the problem with rapidly rising house prices that boost the tax revenue and hence the local government’s coffers. I wonder how many left-wingers bemoaning the Auckland property market prices have reflected on what would happen to already frightening Auckland city deficits if their proposals worked and values dropped!

    Still, as with Austin, the proposed solution will be other new taxes.

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  33. MC2000 (19 comments) says:

    I don’t understand how taking SOEs into account would affect the tax freedom day. SOEs don’t tax me.

    Are they saying that taxes have to be higher to pay for the interest than we are paying for the government debt that we wouldn’t have if we sold them all off? But don’t many SOEs pay dividends that exceed the interest payments we would otherwise be making?

    Are they saying that SOEs are inefficient and so charge me more for electricity etc than a private company would, and that these higher charges can be regarded as a form of tax? If so that’s a very long bow to draw.

    What am I missing?

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