The Tax Working Group’s summary presentation at their December seminar came from a senior partner from one of the Big 4 accountancy firms, Price Waterhouse. One scenario for the preferred ultimate outcome aligned income, trustee and company tax at 27%, paid for by increasing GST to 15%.
At the top:
The graph tops out at $120,000 income. A big 4 partner earns around $500,000 according to David Farrar on Kiwiblog. That would be an extra $47,300 for the Big 4 partners on the group.
At the bottom:
That’s no change for kid’s – 16% left in poverty.
That’s equality? No, it’s a disgrace. These will be the kids who will surely fail National’s rushed-in standards. With no more money to help them, their future stays bleak.
This scenario shows the priorities of the Tax Group – drop the top rates and pay for it by raising GST. Alignment was their buzz word – but there was no mention of aligning up so everyone paid their fair share.
It will be interesting to compare the approaches taken when the Australian report chaired by Ken Henry is released publicly. Indications so far are that it has taken a much broader approach, scanned the environment, looked at the purpose of taxes, and not resiled from the prospect of increasing as well as broadening the tax base.
At least Aussie kids won’t be left behind.