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Treasury fudge

Written By: - Date published: 5:28 pm, September 6th, 2011 - 19 comments
Categories: gst, making shit up, tax - Tags:

Treasury has now adopted their masters’ political line on income statistics. The latest Treasury MEI uses average after-tax wages to argue that an average worker is better off by 2% since October 2010.

The Quarterly Employment Survey showed gross average weekly earnings rose 4.3% (including a 1.2% increase in average hours worked) over the year to June; taking into account the fall in income tax rates from 1 October 2010, after-tax average weekly wages are estimated to have lifted around 7.5%. With the CPI rising 5.3% over the same period (an estimated 2% of this due to the increase in GST to 15%), someone on the average wage is around 2% better off in June 2011 compared to June 2010.

There are two problems with this – in real terms the average worker’s gross wage less inflation is 1% worse off. Also the average used by the Quarterly Employment survey is just over $1,000 a week, around $50,000 a year. This is a long way above the median wage as shown by the latest IRD distribution figures from 2009.

The truth is that a few are hugely better off, some are ok, and most are still losing. Treasury could have told us that the 90th percentile is 20% better off after the tax cuts – that would have been more honest.

 

19 comments on “Treasury fudge”

  1. ghostwhowalksnz 1

    Why on earth do they use the WTI oil price?
    WTI stands for West Texas Intermediate. Neither does the Brent price ( North Sea) the other reference price they use.

    Most useful for NZ is the Tapis index price out of Singapore

    Obviously lazy toffs at Treasury, still following the cultural cringe

    • Colonial Viper 1.1

      The disconnect between the WTI and the Brent prices really set in at the beginning of QE2.

      It is assumed by some that WTI is being manipulated downwards to help suppress US pump prices and assist with American morale.

      Note that the majority of crude oil volumes are now traded on ‘dark exchanges’ at prices not visible to the public.

      • Lanthanide 1.1.1

        Brent went up because of Libyan production which is almost exclusively exported to Europe being taken off the market.

  2. randal 2

    Anybody who knows about the treasury knows that they recruit their personnel from the universities using a very narrow set of criteria so they end up with people like “Bill Englsih”.

  3. Herodotus 3

    Mike – you complain about the means that Tresury uses, anyone with any knowledge with the stats that come out of Treasury, Min of Finance, Min Economic Development etc are only a portion of the story. Unfortunately few are aware of what is in/excluded from inflation and other data that is released. Funny how in 07 inflation was around 3% BUT that excluded the dramatic rise of mortgages that for a floating was around 10.4%, that ate into household incomes.
    Bit off track – but IMO most if not all 1st World govts are extremely fortunate that interest rates are at the current extreme low levels. Then we “would” all be experiencing the fall of the current economic system.
    From another post today

    NRT: The effects of NeoLiberalism


    – So the wage earner is being screwed – we all know that – it is only recently that there has been comment and data to confirm what we all really knew.
    To save us what do we need? Perhaps a Castro type figure that gives the bird to the multinats and banks of the world, not a Goff/Key paint by numbers figure.

    • KJT 3.1

      Mortgage rates have been excluded from the CPI since they were at 28% in the early 80’s.

      They were left off after that, because it would show the absurdity of fighting inflation by inflating mortgage interest costs.

      It must be obvious to everyone by now that the headline CPI only tells half the story.

      The price rises in everyday goods that everyone buys, such as food, have risen at a much greater rate than the CPI. This is masked by the inclusion of goods such as new cars. What ordinary person has ever owned a new car.

  4. If Treasury are going to use after tax figures on wages, then what they should also include in their analysis is the cuts to government services, etc. that have resulted from tax cuts and that have led to real cost increases (e.g., daycare costs, loss of community education, etc.). Some calculation of the impact of those cuts on the average/median taxpayer should be factored in.

    As those on the right are fond of pointing out, most New Zealanders are nett gainers from what remains of our progressive taxation system (via the public services they access) and so, logically, it is the majority who will be the ones hit most by cuts to those services. 

  5. Macro 5

    What else can we expect from these useful “idiots”, other than lies, damned lies, and “statistics”. They know of course, well enough, that they are presenting a false picture of reality, but they could not care less. After all – their income is well above the “average”, and even more above the median.

  6. Peter 6

    Don’t forget these are the same guys who make a virtue of inflation by claiming that “Nominal GDP is recovering” – how embarrassing!

    http://www.treasury.govt.nz/budget/2011/taxpayers/01.htm#_nznominalgdp

  7. mik e 7

    treasury is populated by business round table ideologues Chicago school propagandists

  8. Colonial Viper 8

    I love Treasury / TPTB shit like this; it makes more and more NZers feel that they are struggling and falling further and further behind their neighbours.

  9. Another reason to rehabilitate Karl Marx, all of this reflects the rise in the rate of exploitation i.e. s/v or surplus value over the value of the wage.

  10. KJT 10

    Not to forget the average wage has also been pushed up by big job loses for those on lower wages.

    This year. Wage rise 2%. Grocery bill up 25%.

    The normal experience for the bulk of wage earners.

  11. KJT 11

    The Government could have saved millions by replacing treasury, 30 years ago, with a Don Brash talking doll saying, sell everything, cut taxes, cut spending, cut wages!

  12. Herodotus 12

    This may help to understand how inflation is calculated.
    Please take note of the difference and definition of tradables and non tradables. See how households cannot escape the higher Non Tradables as there can be no substitution of products/services and that these are everyday costs e.g. power, rent, rates. So this is one trap whilst reported inflation/cpi can appear low yet personel experiences tell us that the cost of living is increasing at a quicker rate. But I am sure many are already aware of this 🙂
    http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ConsumersPriceIndex/HOTPJun11qtr/ConsumersPriceIndexJun11qtrHOTP.pdf

  13. Anybody who knows about the treasury knows that they recruit their personnel from the universities ……What else can we expect from these useful “idiots”, other than lies, damned lies, and “statistics”.

  14. Peter nickle 14

    Cry me a river. I don’t feel guilty on being $100K+car+super+medical.
    I am afraid one of the few and I am happy, John Key rocks.
    BTW, my mortgage will be gone by next Friday as well, tax cuts and low interest rates helped me a lot. I will be a rich prick with $6K in my hand per month.
    But I bet I pay more tax than loads of you sad arses on this site as well.

    • McFlock 14.1

      bit much chardonnay tonight, Peter?
      With supporters like you and Alisdair Thompson, no wonder Key is looking a bit frayed around the edges. New Zealanders might figure out they’ve been conned.

    • ghostwhowalksnz 14.2

      And in 15 years you will be selling your strawberries at the local farmers market to eke out an income from the expensive lifestyle block you live on.
      That high paying job ? Of course you were replaced by a cardboard cutout 15 years your junior just because they can.
      Look around you and learn, instead of spouting hubris

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  • Britain’s climate tyranny was unlawful
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • More crime from the spies
    Last year, the Inspector-General of Intelligence and Security reported on significant problems with the intelligence warrant system. While they were unwilling to declare any warrant "irregular" (meaning unlawful) due to the recent law change, they were also not willing to give the system a clean bill of health. Now, they've ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Vaccination, compulsion, and paternalism for the lower orders
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    SciBlogsBy Eric Crampton
    2 weeks ago
  • Global Protests Rage On: But Slogans Are Not Plans.
    Feeding The Flames: It is simply not enough to demand an end to “corruption”, or “inequality”, or the overbearing influence of the authorities in Beijing. These are just “lowest common denominator” demands: the sort of slogans that pull people onto the streets. They are not a plan.WHERE’S THE PLAN? Across ...
    2 weeks ago
  • 11,000 employed under Labour
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Boycott this democratic fraud
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Why Mars is cold despite an atmosphere of mostly carbon dioxide
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    SciBlogsBy Guest Author
    2 weeks ago
  • Climate Change: Ban private jets
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Climate Change: Untold Suffering
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • The left and violent misogyny
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    RedlineBy Admin
    2 weeks ago
  • Imperialism and the iPhone
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    RedlineBy Admin
    2 weeks ago

  • New Zealand’s key assets are not for sale: national interest test delivered
    Mark Patterson, Spokesperson for Primary Industries Today the Government announced the delivery of the promise to protect New Zealand interests by applying a new National Interest Test to the sales of our most sensitive and high risk assets to overseas buyers. This further strengthening of the Overseas Investment Act will ...
    16 hours ago
  • National interest test added to protect New Zealanders’ interests
    The Coalition Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high-risk assets to overseas buyers. Under current Overseas Investment Act (OIA) rules, assets such as ports and airports, telecommunications infrastructure, electricity and ...
    17 hours ago
  • Electoral law breach allegations
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    18 hours ago
  • Wayne Brown hits back at critics: Ports of Auckland has to move
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    2 days ago
  • Week That Was: Supporting our schools
    We're setting our young people up for success, investing in education around the country.  ...
    2 days ago
  • Kiwis to have their say on End of Life Choice
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    6 days ago
  • Addressing miscarriages of justice
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    7 days ago
  • Week That Was: Historic action on climate change
    "Today we have made a choice that will leave a legacy... I hope that means that future generations will see that we, in New Zealand, were on the right side of history." - Jacinda Ardern, Third Reading of the Zero Carbon Bill ...
    2 weeks ago
  • Tax-free deployments for Kiwi troops
    Darroch Ball, New Zealand First List MP A Member’s bill has been proposed that would provide income tax exemptions for all New Zealand Defence Force (NZDF) personnel while on operational deployment overseas. The Income Tax (Exemption for Salary or Wages of NZDF Members on Active Deployment) Amendment Bill proposed by New Zealand First ...
    2 weeks ago
  • A balanced Zero Carbon Bill passed
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    2 weeks ago
  • Paramedics’ status to be recognised
    Jenny Marcroft MP, Spokesperson for Health New Zealand First has listened to calls to recognise paramedics as registered health professionals under the Health Practitioners’ Competence Assurance Act (the Act). Today, the Coalition Government announced plans for paramedics to be registered as health practitioners under the Act, and the establishment of a ...
    2 weeks ago
  • Week That Was: 2,000 teachers in two years
    We began the week by commemorating the New Zealand Wars and celebrating a major increase in the number of teachers. Then, we were busy supporting offenders into work and getting our rail back on track after years of underinvestment. And that's just the start! ...
    3 weeks ago
  • Winning an election one conversation at a time
    In October I was sworn in as the Mayor of Lower Hutt. It’s the privilege of my life to serve Hutt people as their Mayor. There is something really special to be able to serve the community where I was raised, and where I live.   ...
    3 weeks ago

  • Clamp down on wheel clamping passes third reading
    New rules to clamp down on overzealous wheel clamping and extortionate fees charged in order to release a vehicle have passed their final stage in Parliament today. The Land Transport (Wheel Clamping) Amendment Bill has now passed its third reading. “These changes mean $100 will be the maximum wheel clamping ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Mental Health and Wellbeing Commission Bill passes first hurdle
    An independent Mental Health and Wellbeing Commission is a step closer after it unanimously passed its first vote in Parliament today.  The Mental Health and Wellbeing Commission Bill lays the groundwork for establishing the Commission as a fully independent crown entity – delivering on a key recommendation of He Ara ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Boosting border security with electronic travel authority – now over 500,000 issued
    We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to screen travellers for border and immigration risks off-shore before they travel to New Zealand. It was launched in August and became mandatory on 1 October 2019. More than 500,000 NZeTAs have been issued since ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Plan of action to protect seabirds
    A proposed national plan of action to reduce the number of seabirds caught in fisheries is being circulated for public feedback. Fisheries Minister Stuart Nash and Conservation Minister Eugenie Sage say New Zealand is a global centre of seabird diversity with about 145 species in our waters. It has more ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • National interest test added to overseas investment rules
    The Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high risk assets to overseas buyers. Associate Finance Minister David Parker said under current Overseas Investment Act rules, assets such as ports and ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • New housing part of support for Kaumātua
    The Government is building special housing to accommodate one of Aotearoa’s greatest taonga- our kaumātua, says the Minister for Māori Development, Hon Nanaia Mahuta.  Speaking at a National Kaumātua Service Providers Conference in Rotorua today, the Minister reinforced the importance kaumātua play in maintaining and passing on mātauranga Māori, knowledge, ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Forestry helps prisoners into jobs
    Eleven men from a pilot forestry training programme for prisoners in Northland now have full time jobs or job offers upon release, Corrections Minister Kelvin Davis and Forestry Minister Shane Jones announced today. The ‘release to work’ programme was a collaboration between Te Uru Rākau and the Department of Corrections, ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Reform of public service a step closer
    Minister of State Services Chris Hipkins today introduced into Parliament a Bill that will make it easier for the public service to tackle the biggest challenges facing Governments. The Bill represents the most significant change in the public service in 30 years. The State Sector Act 1988 will be repealed ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Donations scheme to relieve pressure on families
    The families of more than 416,000 students will be better off next year as their schools have signed up to the Government’s donations scheme, Education Minister Chris Hipkins said today. The scheme will see almost $62.5 million in additional Government funding go to schools nationwide next year. “I’m really pleased ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Further support for Samoan measles outbreak
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    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech to the Child Poverty Action Group 2019 Summit
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    2 days ago
  • Speech to the New Zealand Thoroughbred Racing Annual Conference
    ***Please check against delivery*** Good morning everyone. It is a pleasure to be with you this morning to open this year’s New Zealand Thoroughbred Racing Conference and AGM. Firstly, thank you Dr Alan Jackson, NZTR Chair for your introduction. And let us acknowledge also: The NZTR Board; Dean McKenzie, Chair ...
    BeehiveBy beehive.govt.nz
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  • Fairer rules for tenants and landlords
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Two decades of marine protection celebrated at Te Tapuwae o Rongokako in Tairawhiti
    A marine conservation milestone - the 20th anniversary of the establishment of Te Tapuwae o Rongokako Marine Reserve - is being celebrated today at a community event in Tairāwhiti/East Coast attended by the Minister of Conservation, Eugenie Sage. “The creation of this marine reserve in November 1999 was a game ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Food industry asked to step up fight against obesity
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    BeehiveBy beehive.govt.nz
    4 days ago
  • Modern emergency care for Queenstown area
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    BeehiveBy beehive.govt.nz
    5 days ago
  • Contraception important for New Zealanders
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    5 days ago
  • NZ medical staff and measles vaccines going to Samoa
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    BeehiveBy beehive.govt.nz
    5 days ago
  • Disability Action Plan 2019 – 2023
    “The new Disability Action Plan 2019–2023 moves us towards the inclusive and accessible New Zealand that this government has committed to,” Minister for Disability Issues Carmel Sepuloni announced today.  “The Action Plan was designed by disabled people, their family and supporters, the disability sector and government agencies. It will ensure ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Joint Statement – Third Singapore-New Zealand Defence Ministers’ Meeting
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Sexual Violence Legislation Bill has its first reading
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Streamlined business invoicing a step closer
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    BeehiveBy beehive.govt.nz
    6 days ago
  • More frontline biosecurity officers protecting NZ
    Another 51 quarantine officers and four new biosecurity detector dog teams will help protect New Zealand from invasive pests and diseases this summer, says Biosecurity Minister Damien O’Connor. “The Government is delivering on its commitment to strengthen New Zealand’s biosecurity system and support our valuable primary sector “New Zealand’s flora, fauna ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ space economy worth $1.69 billion
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    BeehiveBy beehive.govt.nz
    6 days ago
  • New Chair for Royal Commission into Abuse
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Better mental health facilities for Palmerston North
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Bowel Screening hits halfway point
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    BeehiveBy beehive.govt.nz
    6 days ago
  • More vaccines for meningococcal disease
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Fisheries innovation projects supported
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    BeehiveBy beehive.govt.nz
    7 days ago
  • Government fixes culturally arranged marriage visa issue
    The Government has fixed an issue affecting how Immigration New Zealand has processed visa applications for culturally arranged marriages, which will now see a consistent process applied which ensures people with legitimate arranged marriages can visit New Zealand while also preventing any rorting of the system. Earlier this year Immigration ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Extension for Royal Commission into Mosque attacks
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    BeehiveBy beehive.govt.nz
    7 days ago
  • Terrorism and Trade on agenda as Foreign Minister visits the United States
    Foreign Minister Winston Peters will travel to Washington DC today to attend a ministerial meeting focused on defeating ISIS, and to continue pursuing New Zealand’s trade opportunities. Mr Peters will participate in a meeting of Foreign and Defence Ministers from key countries contributing to the Global Coalition to Defeat ISIS. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Hoiho get extra support alongside 168 community conservation groups backing nature
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    BeehiveBy beehive.govt.nz
    7 days ago
  • New safety measures for modified pistols
    Controls on assault rifles and semi-automatic firearms are to be broadened to include some types of pistols, under changes to a bill currently making its way through Parliament. Police Minister Stuart Nash has tabled a Supplementary Order Paper to the Arms Legislation Bill, which is currently before a Select Committee ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Minister of Defence to visit Singapore and Thailand
    Minister of Defence Ron Mark will travel to Singapore today to conduct a counterpart visit and to co-chair the third annual Singapore-New Zealand Defence Ministers’ Meeting with his counterpart, Minister for Defence Dr Ng Eng Hen. “Singapore is one of our most important defence partners in the region, and our ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Future secured for Salisbury School
    Nelson’s Salisbury School is to be rebuilt, creating a modern and suitable learning environment for students at the residential special school, Education Minister Chris Hipkins and Associate Education Minister Tracey Martin announced today. The school for girls aged 8-15, in Richmond, was earmarked for closure by National until the process ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Resource management reform options released
    The panel undertaking a comprehensive review of the Resource Management Act has identified the main issues to be addressed and options for reform and is calling for feedback to inform its final report.  In July the Government announced the comprehensive review of the resource management system, including the RMA - ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Criminal Cases Review Commission established
    An important safety valve has been added to New Zealand’s criminal justice system with the third reading of the Criminal Cases Review Commission Bill today. The Criminal Cases Review Commission (CCRC) will investigate claimed miscarriages of justice. “We’ve seen how our justice system can very occasionally get things spectacularly wrong, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Racing Industry destined to be on-track
    Racing Minister Winston Peters welcomes the tabling of the Racing Industry Transition Agency (RITA) 2019 Annual Report in Parliament today. He says the 2019 Annual Report marks the point when New Zealand’s racing industry’s decline was arrested and a turnaround started. RITA’s 2019 Annual Report recorded an industry net profit ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand firefighter support to Queensland
    The New Zealand Government is today sending 21 firefighters to help fight the ongoing catastrophic Australian bushfires. “The fires in Australia are in some of the toughest, most challenging conditions ever,” says Internal Affairs Minister Tracey Martin.  “As of yesterday morning, there were 100 active bushfire-related incidents across Queensland and ...
    BeehiveBy beehive.govt.nz
    1 week ago