50 dollars and northwards

Written By: - Date published: 11:30 am, March 16th, 2010 - 14 comments
Categories: gst, humour, tax - Tags: ,

Felix can hardly contain himself at the prospect of National’s tax changes:

Woohoo!! Told you my mate Mr Key would be able to deliver a ‘north of $50 a week’ tax cut. And you all said he wouldn’t. So who’s looking stupid now eh?

I mean sure, you need to bring in $180,000 a year to get it but just get off your arse and be a bit more ambitious whydontcha? Either up-skill or learn how to trade currency and you’ll be claiming your ‘north of $50 a week’ in no time.

And when I say ‘in no time’ of course I mean ‘in quite some time’. Or ‘at no time’ depending who’s asking. What time is it in Australia? Stop confusing me.
 
North of $50 a week!!! YEAAAH!!!
 
🙂 Yeah, um, about that promise of tax cuts “north of $50 a week” that Key made to get elected…. Well, the reality isn’t so flash I’m afraid.
.
80% of taxpayers will get net tax reductions of $3 a week or less (mostly a lot less), 10% will get tax increases, and the top 0.5% (17,500) walk away with nearly $200 million a year in net tax cuts – $11,000 each.

14 comments on “50 dollars and northwards ”

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  1. artist not on the dole 1
    16 March 2010 at 1:10 pm

    wow $11,000. that is only $700 less than my current gross income per year.

    and by the way i am going to be $15-$25 per month worse off once the flow-on of g.s.t. hits my rent, power, phone and food bills. Sure g.s.t. only rises 2.5 % but that will probably mean a 5% utilities hike, plus the already announced increases in power, and petrol pricing, and as far as the drop in income tax, well the $5.62 a week (approx) is long gone by the time i get to work, and there is no practical public transport where i live to help reduce costs

    somehow any time a tax is raised the flow-on always seems double for us folks at the bottom .

    • Lanthanide 1.1
      16 March 2010 at 2:37 pm

      Don’t forget increasing ACC levies. Currently 1.7%, believe it is going up to 2.3% (can’t find any info online with next years rate). This change in itself eats up half of the tax cut that I got from National last year, the other half I sunk into kiwisaver.

  2. Lee Paterson 2
    16 March 2010 at 1:18 pm

    Wow, I will actually be worse off (I am THAT lucky on my current wage)… but you know? – I really wish that my increased tax was going to benefit the societal majority, rather than just those people who already earn plenty of money.

  3. mickysavage 3
    16 March 2010 at 1:23 pm

    In 2005 I thought the tax cut plan for that election (funny how there always is a tax cut plan) was quite well structured. It was aimed at the bottom bracket so that the maximum tax cut would be capped and would kick in at a reasonably modest rate.

    Never in my wildest dreams did I think they would do the opposite and cut the top tax bracket. Because then you get really weird politically devastating results like Key getting a huge tax break. This allows Labour to go throughout the country and say “we told you so” to the population. But side show John did it??

    Roll on the next election.

    • Pete 3.1
      16 March 2010 at 2:19 pm

      Except ‘we told you so’ has no currency amongst ‘middle-NZ’, and is always expressed as elitism by National and co (and lapped up, generally, by the public).

      More ironic than an Alanis song I’d suggest (Ed Byrne stand-up notwithstanding).

  4. felix 4
    16 March 2010 at 4:17 pm

    Hey, that artist’s impression looks exactly like me.

    Do you think we’ll ever get National supporters to talk about tax cuts again? The very subject is like kryptonite to them these days…

  5. Midas 5
    16 March 2010 at 6:12 pm

    Your graph is too small. Assuming the law and accounting partners on the Tax Working Group earn $500,000 a year, what’s their tax cut worth?

    • Marty G 5.1
      16 March 2010 at 10:30 pm

      It can’t go out too far or I lose the detail at normal incomes 🙂

      On $500,000 your net tax reduction is around $13,000

  6. Horace 6
    16 March 2010 at 7:50 pm

    Maybe its time for civil disobediance, like shitting outside parliamant?

  7. Mats 7
    17 March 2010 at 12:18 am

    Facebook has a page “Say NO to a rise in GST!”

  8. SD 8
    17 March 2010 at 6:09 am

    Cutting the tax rates from 38 to 33 cents, 21 to 19, etc; is giving those on the top bracket a 5 cent cut, while the majority only get 2 cents?

    I wonder how much the average worker would be better off if they recieve a 5 cent cut!