Quote:
Originally Posted by ExPat
If NZ has a predominant culture of "do it yourself" then WHY OH WHY is the taxation so high? 12.5% GST AND "rates" AND 40% income tax on anything above 60k is excessive for a culture that prides itself on self reliance don't you think?
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I'm with Selchie. When I try to consider all the many subtle forms of taxation here in the US I believe it could well be equal. I do own a house here and property tax is about 6% of my AGI. Gotta consider that. In Texas sales tax is 8.25%. Not THAT much different from 12.5%. If I spend 25K on goods and services that amounts to a thousand bucks difference.
Look at the NZ ir3g - it's so straighforward as to be refreshing, after the byzantine US tax code.
http://www.ird.govt.nz/resources/fil.../ir3g-2006.pdf
I don't know why "rates" have you in such an uproar, Expat. Methinks thou dost protest too much! Most in the US are used to paying property tax, and at a much higher % than the NZ rates. See this from Selwyn
http://www.selwyn.govt.nz/rates/2006-revaluation.pdf
I'd love to pay those rates! And they showed a 66% increase in the recent 3 yr evaluation, and no raise in tax? Unheard of, where I come from.
Finally, I think you've got to consider the health insurance question. Expat pays $130/month for a family of four but one must understand that that is not an individual insurance policy. Someone somewhere is subsidizing this copayment -probably an employer or the state. If you went out to buy this individual policy on your own, you could easily pay $800/mo or more, as anyone shopping for insurance in the US will attest.
So to my eye you've got US Federal income taxes most likely in the 20%'s, add 6% property tax (in my case), add 8.25% sales tax, and add anywhere from 0 (full company paid - rare) to10% (full private individual pay) for health insurance. Obviously the more you make the higher the income tax percentages get, in both US and NZ, but making a lot of money is a good problem to have, no?
The year I paid Uncle Sam the most money? Boy was that a great year. I'd like to have that year again! Please! Where can I pay?
And that's enough about taxes for today--