Electric vehicle ‘corrective taxes’ to incentivise behaviour

A couple of tweets in close proximity:

And:

This doesn’t properly sum up ‘incentives’ that would tax mostly poor people (as illustrated here) – it doesn’t show the giving of those taxes to mostly richer people, who are far more likely to be buying new vehicles. Perhaps that’s why Morgan likes the idea.

22 Comments

  1. Blazer

     /  May 8, 2018

    taxes are just for the ‘little people’….anyway…trusts and tax havens is where the smart ‘…money…hides.

    • High Flying Duck

       /  May 8, 2018

      Trusts are taxed at the top tax rate in NZ – 33%.

      • Blazer

         /  May 8, 2018

        no tax benefits in having a…trust?

        • Gezza

           /  May 8, 2018

          People usually set up a family trust to get some benefit from no longer personally owning an asset. A family trust may be useful to:

          Protect selected assets against claims and creditors – for example, to protect a family home from the potential failure of a business venture.
          Set aside money for special reasons, such as a child or grandchild’s education.
          Ensure our children, not their partners, keep their inheritances.
          Manage the risk of unwanted claims on our estate when we die – such as from a former partner.

        • Gezza

           /  May 8, 2018

          FOR TAX PLANNING BENEFITS

          When income is received in a Trust, the Trustees can elect how it is allocated –to retain it in the Trust or distribute some or all to beneficiaries.

          When such decisions are made Trustees should take into account the tax rates applying to beneficiaries and in many cases, this will result in savings of tax.

          Maximising tax efficiency should be a consideration of the Trustees and can often result in considerable tax savings.

          Whilst income from personal exertion (wages and salary) cannot be diverted to Trusts, investment income can be by transfer of the income earning assets to a Trust. Under current tax rates having that income taxed at the Trustees’ rate of 33% (or lower if distributed to beneficiaries in some instances) is preferable to having that income taxed at the current highest tax payer’s rate of 38%. When these rates change on 1st October 2010, distributing to lower tax rated beneficiaries will become more tax efficient.

        • Gezza

           /  May 8, 2018

          The six main types of Trust are:

          Family Trust
          Parallel Trusts
          Single Trust
          Inheritance Trust
          Business Trust
          Charitable Trusts

          https://www.nztrustees.co.nz/types-of-trusts/

          • Kitty Catkin

             /  May 8, 2018

            If trusts were tax free, we’d all have one and avoid RWT if nothing else.

            Blazer can’t see that tax havens are legal and that they don’t need to hide. Everyone knows that Jersey is one !

  2. alloytoo

     /  May 8, 2018

    so…..10 years from now, who’s going to pay for the recycling of all these subsidized batteries….I know…..

    • Griff

       /  May 8, 2018

      Yess
      Who pays to recycle your lap top and phone batteries?

      The value of the contents assures they get reused/recycled.
      There is already an industry in this country reconditioning hybrid car batteries.
      Often a degraded pack only needs one or two units replaced to bring it back to a usable capacity.
      Once no longer good enough for a car the battery can be used for fixed storage .
      Used car batteries are already being sold offshore for off grid storage. I expect to be replacing my 20kwh lead acid bank with an ex car lithium bank when its life ends in about eight years.

      I believe any tax would be levied on the border on cars entering NZ
      Second hand ICE cars will also pay a percentage of their value in tax.
      Those with little money buy second hand imports so they also have the ability to benefit from a tax transfer encouraging the uptake of electric cars .

      What about the poor peploe is often only trotted out to cover other agenda by those who as a rule dont give a squashed rat for poor people.

      • David

         /  May 8, 2018

        “What about the poor peploe is often only trotted out to cover other agenda by those who as a rule dont give a squashed rat for poor people.”

        Reminds us again Griff, was it the top spec Tesla you bought at $300,000, or just the base model at $200,000?

  3. david in aus

     /  May 8, 2018

    The Greens are consistent on these issues. They also want poor people to subsidise solar panels for middle-class and rich households – chardonnay-socialists.

    Saying that, Gareth Morgan’s idea is better economically than the tax-bate idea for electric cars. You are less likely to have diesel cars sold or on the road.
    If poor people are made to pay, at least it is better for the country economically and environmentally.
    The largest contributor to the trade-deficit is oil. To compensate, we just need to harness the wind energy emanating from parliament.

  4. Gezza

     /  May 8, 2018

    Ooh a levy? People like those, Gareth. At least they’re not a tax. 🙄

  5. Zedd

     /  May 8, 2018

    why dont they look into creating business to pull out old engines & install electric ones in the current fleet (cars less than, say 10 years old) ?

    unfortunately; in the modern ‘throw away society’ it is maybe cheaper to just replace them ?? 😦

    • David in Aus

       /  May 8, 2018

      That would likely cost more than a new electric car. The car is designed around the battery and not battery around the car.

      • Kitty Catkin

         /  May 8, 2018

        It’s a good thought, Zedd, but I suppose that if it could be done, it would have been, What a shame that it can’t.

        • Zedd

           /  May 8, 2018

          Ive heard a new electric vehicle costs $40-50k ?
          Surely it would still be cheaper to buy the replacement electric motor/batteries & install it ??

          • Kitty Catkin

             /  May 8, 2018

            Well, you’d think so, wouldn’t you ? People put new engines into cars, after all,

          • David

             /  May 8, 2018

            “Surely it would still be cheaper to buy the replacement electric motor/batteries & install it ??”

            No it wouldn’t be, it’s quite insane in fact. The differences are quite fundamental.

  6. Ooh goodie, the gas guzzling import drives can subsidise my future TESLA. That’s great. They’re already subsidising my rich neighbours kids to all go to Uni…

    • Kitty Catkin

       /  May 8, 2018

      No, it’s the ordinary workers who are subbing the rich kids to go to university, isn’t it ?

  7. David

     /  May 8, 2018

    I wouldnt object to a new car sales tax ring fenced for say charging station installation up and down the country. I just bought a brand new range rover and if there was a couple of grand tax on top I would be quite happy to pay it. Cant wait for the electric one which they are testing at the moment but I wouldnt want it subsidised I dont need taxpayers money but the market isnt going to put in charging stations all over the place.

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