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Thursday, October 13, 2005

Never Safe

Ironically, I was just saying to some-one that with "no government" things seem to be running fairly well. The long sticky arm of fate reached out and tapped me on the shoulder to remind me we are never safe. I opened the mail today.

Evidently, the council needs more dosh. So it has revalued my land and building and increased my valuation by around 45%. Wow, my place is worth 45% more than last week! They must have some big projects in the wings. Or maybe this is simply to reduce their overdraft?

What's the bet should I put the property on the market and it wouldn't sell because the rates are too high??

What my new revised rates will be after a 45% increase in value, I have no idea, but whatever the amount, GST will be tacked on too. Charming. Isn't that called adding insult to injury? I wonder if this is covered by ACC? On the form under "Cause of injury", I could write in Taxes and rampant socialism.

The government has already taken a chunk of money out of my income, and it seems the more income I manage to get, the greedier they become. They called it "Progressive Taxation". Sometimes, in a moment of apparent guilt, they rebate some of it, but usually I find this is actually just a cash flow issue. It's to encourage spending so they can boost their votes and GST income simultaneously.

On top of GST and road usage fees (car registration and the 60Kph tax), they also levy other taxes such as rates. Remember rates? I started off explaining that rates were going up faster than my mortgage interest rates. Interest rates get increased by the government too. The government raise interest rates to slow the economy down. They do this by making me give more money to the Bank. That makes perfect sense to me. Every-one knows Bankers wont spend my money as fast as I would. They'll just use it to loan to some-one else about 10 times the amount, because they invented fiat currency. But I digress.

Tax isn't necessarily unfair - its more the variety of sources and the total proportion one has to pay out of total income that eventually rankles, and this rankle feeling gets sent over the edge when viewing the frequent evidence of wasting that money on hare-brained schemes.

"The price we pay" for living in NZ is the usual apologist rhetoric. Well, we are free to suggest better ways of doing things. Accepting mediocrity as an inevitable side effect of living in NZ might be alright for some, but I'm a right wing utopian! So as much as it annoys those that just love the status quo, I'm going to keep on blogging.

I just thought this rated a mention.

PS: Joking about the Utopian part.

UPDATE: Good news for ZenTiger. Gary explains to me that my rates bill might not increase that much, because the rates payable are calculated differently. The issue will be on how much my valuation has increased as compared to all other places in the district with other factors in play as well. Can I go back to enjoying a country without a government? If this keeps up I might declare myself a reborn libertarian....

Posted by ZenTiger | 10/13/2005 04:30:00 PM


Blogger Ashley Clarkson said...

Stink - must be the need for new water sources since you lot seem to drink the rivers and wells dry in the summer. Or that plant they were building which kept running over budget and eventually was stalled - maybe they want to bite the bullet and finish it.

Ever worked out how much of your income is lost to tax, rates, levies etc? It's probably illuminating and horrifying at the same time, I am sure.

"Interest rates get increased by the government too. The government raise interest rates to slow the economy down. They do this by making me give more money to the Bank. That makes perfect sense to me. Every-one knows Bankers wont spend my money as fast as I would."

Well actually the Central Bank does, which is independent of the government's interference. It definitely works in encouraging investment and slowing consumption though. At least the 20% rates of the 1980s are gone - I pity my parents for having to have to deal with those. Still, you can't have your state and eat it too.

10/13/2005 04:41:00 PM  
Blogger Adolf Fiinkensein said...

Zen, the good news is that provided everyone else's valuations have goe up by the same percentage your rates will remain unchanged unless your councillors actually vote to increase the quantum of the rate take next year. An no, it doesn't mean you house is worth 45% more than last week but it may well be worth 45% more than it was worth a year ago..

10/13/2005 05:18:00 PM  
Blogger ZenTiger said...

Thanks Adolf. Gary just posted the same info at Zen State, so I updated the post above.

I also decided to open a bottle of red to relax further - because even after this, chances are the mortgage rates will go up later this month.

10/13/2005 05:31:00 PM  

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