If you’re feeling lost in the discussion around National’s tax plans there’s handy analysis from Keith Rankin who point out:
… persons earning between $14,000 and $24,000 will receive annual tax cuts of less than $100. They will receive nothing before 2011. This contrasts with Labour’s already legislated for tax cuts, from 2010, which target this group of workers… The figures [table below] clearly show that, for low income workers on about $20,000 (most will be in partâ€‘time, shortâ€‘time, or variableâ€‘time work situations), National will give them a tax cut of just over $1 per week.
Further, workers who don’t qualify for the IECT will be worse off than they would have been under Labour for incomes up to about $45,000. National has been unable to enunciate any sound reasons for the exclusion of persons earning less than $24,000 from access to the IETC…
It is particularly important that the Government realises that, as unemployment rises next year, many people currently earning more than $24,000 per year will find themselves with annual incomes below $24,000 in the years to come. It will be cruel to give them an IETC, like giving a person an umbrella, only to take it away when the rain comes, when they most need it.
And he goes onto provide a policy solution (of changing the IECT). Let’s hope the round building pays attention and embraces the opportunity to make some improvements.