[update: download this (tax-and-kiwisaver-calculator) simple excel table that will calculate tax cut and Kiwisaver losses under Labour and National, and the difference, for you and your family. No other calculator has included Kiwisaver losses]
So, you’re talking with someone about politics and they say something really dumb and wrong and you know it’s wrong but you don’t have the arguments and facts at your fingertips to make a decisive point. That’s where our election series, The Standard line, comes in. The info you need in bite-size form. Today: tax cuts
– tax cuts are not the only thing you should judge a party on. Tax is used to provide public services – there is a trade-off between tax cuts and better public services
– don’t just consider your personal situation. Just because one party offers you a bigger tax cut is it worthwhile if others you care about lose out?
– If you, like 1 million people, earn less than $14,000 the tax cuts from both parties are the same
– If you, like around 500,000 people, earn $14,000 to $24,000 you get more from Labour’s tax cuts
– If you, like around 500,000 people, get Working for Families, Super, or a benefit and your income is less than $44,000 your tax cut is larger under Labour because you wouldn’t get National’s ‘independent earner’ rebate
– if you, like 850,000 people, are in Kiwisaver you will be better off with Labour because National would cut Kiwisaver to pay for its tax cuts.
– Most of the money in Labour’s cuts will go to low and middle incomes, most of the money in National’s cuts would go to the wealthy. Just 10% of people get 40% of the money in National’s cuts.
– A family with children, each parent earning $35,000 and in Kiwisaver would be $52 a week worse off under National compared to Labour’s cuts. John Key would be $87 a week better off.
– National’s next round of tax cuts would come in 2009, a year before Labour’s next round, but there is nothing in that second round for anyone earning less than $48,000 and most of the money would go to people earning more than $70,000.
– Labour’s tax cuts are already passed into law. Labour has said they will not be cancelling their next rounds of cuts