Is it fair that the top 10% of wage and salary earners get 42% of the tax cuts and the bottom 20% get 2%?
Is it fair that someone on $1,000,000 gets $1,000 a week extra in the hand per week, and someone on the median income of $28,053 gets $4.64 in the hand per week after GST?
Is it fair that a regressive tax is increased to make a progressive tax less so?
Is it fair that the Minister of Revenue gets a tax cut of around $140 per week in the hand whereas someone on the median wage in his electorate gets about $5?
Nope didn’t think so – and neither do the vast majority of New Zealanders.
I think there may be a difference between Key having a humble beginning and being poor. His mother worked 2 jobs, and had a widow’s pension. They had subsidised accomodation etc.
Dear Loota @4.48pm
I suspect that you and I would probably agree on many things. I completely agree with you that we are not here to benefit ourselves, but our wider communities and society.
For example I was thrilled when the Labour Party campaigned in 2005 to make student loans interest free, even though it was too late for me to benefit from that policy.
In my last pay I had subtracted $1k in PAYE – among other things that contributes to the state supporting those on lower incomes through the unemployment benefit, the sickness benefit, accommodation supplement, Working for Families etc etc. Do I look at that and question whether or not that is fair? No, I simply accept (and like) that one of the responsibilities that comes with living in NZ is that those who are doing better contribute to supporting those who aren’t.
So in answer to the question of is it fair that the minority benefit the most from the tax cuts? Well yes it is, because that same minority also shoulder the burden of the majority of the costs that pays for all the programmes above.
Yep, but why are they then penalised when it’s obvious that they just haven’t been taught?
There’s actually only one way that we can do so and that is through community. Specifically, community support and ensuring that people know that there is a place that they can turn to for help. But this needs to be communicated at a young age so that those cycles are broken.
There’s some doubt about that – 50 of the top 100 earners in NZ aren’t in the top tax bracket.
In fact you are dead wrong; the very wealthy need to shoulder more of the burden not less. Remember that these tax cuts are ones which NAT has paired with funding cuts and people cuts.
And in a truly progressive tax system, the wealthy should shoulder much more than they do today. Much more in the funding to build fairer communities with improved infrastructure and services for all. Things you say you support.
The income tax rate change would have been fair if it was financed by a CGT rather than a higher rate GST on necessities like food, power and rates.
So the answer is to propose a CGT and a lower rate GST on (all) food (having zero on fresh fruit and vegetables and frozen vegetables and canned fruit) power and rates.
A higher rate GST on discretionary spending items could then finance a lower rate of tax on interest income (eliminating tax on the inflation componment of the return – simply done by only taxing half the interest income). This creates the incentive to save and not spend – whereas loss of value to saving stimulates consumption now (including in part by borrowing).
Great ideas SPC. Its just a shame that “fair” is not a priority for the current Government.
Hug for Tracey
@CV/Loota, how much of the tax burden do you believe the top 10% currently pay..?
Of course they don’t and they never will… How do you think they get to the top 50 earners..? By knowing the tax code and minimising their exposure…
@Jeremy M Harris
And now those taxes have been dropped and there are still many holes, they are now paying even less! Not good overall…
The rich want better workers to make them richer, yet not willing to pay for the education!
They want workers who are more willing and more co-operative, so they get the government to create legalization that can bull workers into submission.
They want more skilled workers, but the low wages they offer and crap employment laws scares them away.
So yeah, it good to give them sods a tax cut, they can reap what they sow, nothing but acid….
Oh, I thought in your ideals of capitalism the top 50 earners/top 50 most wealthy might have got to their esteemed positions by contributing their maximum value add to society – not ‘minimising’ it
Well you see Loota there is more to contributing to society than simply paying taxes… Gareth Morgan has worked hard to minimise tax his whole life, then when Trade Me sold he gave his $47,000,000 million share to set up a foundation, I think Sam Morgan gave $20,000,000 into it too…
Expanding economic growth and creating jobs is contributing to society…
Every NZer has the ability to minimise their tax exposure and should do so, not just the wealthy…
Your proposal to raise the top tax rate to 50% would simply drive professionals, engineers, lawyer, doctors, accountants, CEOs, dentists, etc overseas… It shows you really have no idea about how the realtionship between various tax rates work…
Even with my relatively limited knowledge I personally could earn millions a year and not pay a cent over 30%, even if you put the top tax rate up to 50% and left the rest the same…
I notice you didn’t answer this question either:
Is it because your worried if you guess and your guess is way too low it might undermines rants such as this:
Or do you know and don’t wanna say because you think the amount undermines rants like the one above..?