Bill English didn’t mention it – and nor did John Key, in his comedy act called his budget speech.
But we spotted it. On page 69 of the 2010 Budget speech handed out to MPs this afternoon was this sentence :
“The redundancy tax credit will be removed from 1 October 2010.”
Labour introduced the redundancy tax rebate in 2007 to make the taxing of redundancy payments fairer for workers who were pushed into a higher tax bracket as a result of receiving lump sum compensation payment for redundancy. This applied to redundancy payments paid on or after 1 December 2006.
This was because it was simply not fair to have to pay a higher level of tax because a worker loses their job through no fault of their own.
But now National will ensure that workers who do receive redundancy pay can be overtaxed like they used to be. Talk about punishment.
This comes on top of the government’s recent failure to support legislation that would have given all Kiwi workers minimum redundancy payments .
Now, thanks to National, even those workers who do receive compensation will also be penalised.
Mean, mean, mean.