According to the ODT government MP’s are going to be travelling around the country trying to convince New Zealanders that their plan to cut taxes for the rich isn’t actually a plan to cut taxes for the rich at all.
Presumably they’re going to be travelling on the taxpayer’s dime to do so:
Mr Key said a family on the average income of $76,000 a year would be about $25 a week better off, even after the GST increase was factored in.
“Over the next fortnight, Government MPs will be out and about communicating the effects of the tax changes and you will hear more about that from us as October 1 approaches,” he said.
In fact the median income wage and salary income is just $46,000.
According to the government’s own calculator (which includes GST) that means a household on the median income will get just $10 a week extra. But that’s assuming a single earner household. Split that income into a minimum wage job and a part-time job and the net gain is more like $7 a week.
And when you split the $76 average Key is using into a couple of lower-middle class incomes his $25 gain starts to look more like $15.
Of course if you’re Paul Reynolds on $5m your gain looks more like $3,452 a week.
That’s $179,515.96 a year – four times the full median household income.
So there you go. The government is going to be using your taxes to travel around the county telling you why it’s a good idea for you to borrow a billion dollars so they can give a very small number of very rich people a very large amount of cash. And all while telling you to be thankful for your seven bucks.
This should be entertaining.