What will you do with your tax cut?
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9:46 am, September 29th, 2008 - 46 comments
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If your annual income is over $14,000, your tax will decrease by $12 to $28 a week from Wednesday. That’s a reduction of up to 26% on the income tax you pay. By 2011, people will be paying up to 31% less income tax (graphs here). With boosts to Working for Families, many people with children will be paying no net tax (already the average tax paid by a single earner family with two kids is only 2%).
Funny, then that the actual amount of cash seems a little underwhelming to those on comfortable middle-class incomes. Funny because we’ve had nearly a decade of National basing its entire political argument around the need for tax cuts. Yet, now we have tax cuts, no-one seriously thinks they will be the panacea that National has made them out to be. National’s argument, of course, is that we just need to cut more, specifically for the wealthy (they have ruled out cutting the bottom rate any further). But if $1.7 billion worth of tax cuts this year, rising to over $3 billion a year by 2011, isn’t the cure to all our woes why would more make all the difference? It wouldn’t, of course. Tax cuts are not a solution to low wages, they are not the difference between people leaving NZ and staying, they are not compensation for inflation, and they never can be. And every dollar spent on tax cuts is a dollar that can’t go on health or education or, in the case of National’s cuts, a dollar that has to be borrowed on the turbulent international credit market.
So, what will you do with your tax cut? I expect all our friends on the Right who claim we don’t need a public welfare system because that’s the role of private charity will be keen to donate to a worthy cause. The Anglican Church’s quirky ‘give it up’ site has a number of good ideas for organisations you can give your tax cut to. For something less Christian-based, how about an environmental group like Forest and Bird, or a local community organisation, or even a political party, so they don’t have to turn to secretive wealthy donors?
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The Green Party vows to reinstate the oil and gas ban and revoke permits when it returns to government following the coalition’s introduction of legislation to reopen offshore oil and gas exploration this afternoon. ...2 weeks ago
- Government introduces controversial MACA legislation
The Government’s introduction of its interventions in the Marine and Coastal Area (Takutai Moana) Act threatens to throw relations between Māori and Crown into deeper disharmony. ...2 weeks ago
- Release: Gun lobby bill removes regulation at ranges
Gun lobbyist Nicole McKee and her conflict of interest has struck again, this time removing safety regulations from shooting clubs and ranges in New Zealand. ...2 weeks ago
- Release: Govt forgetting the 6000 jobs they’ve cut
The real problem in the public sector is ongoing job losses and cuts to the front line. ...2 weeks ago
- Government undermines public service with WFH crackdown
The Green Party says the Government’s retrograde move to tighten up on Work from Home arrangements is the latest in a series of blows to the Public Service. ...2 weeks ago
- Release: Ministers oblivious to cuts’ effect on families
The National Government is oblivious to the impact cuts to services will have on New Zealanders who are doing the hard yards caring for mentally ill family members. ...2 weeks ago
- Release: Public service set up to fail under National
Nicola Willis has set up the public service to fail to pay for reckless tax cuts for landlords and the tobacco industry. ...2 weeks ago
- Release: Coalition cooking up costly RMA replacement
National continues to dismantle environmental protections in the interests of rushing through unsustainable development that will ultimately cost communities. ...2 weeks ago
- Release: National red-faced as benefit numbers skyrocket
The economy has stagnated and the National Government is having to face the consequences of its atrocious lawmaking, as beneficiary numbers skyrocket past even Treasury’s predictions. ...2 weeks ago
- Release: National allocating police officers not hired yet
There are 104 fewer police officers now than there were when National came into Government. ...2 weeks ago
- Economic decline further cause for tax transformation
Today’s GDP figures combined with the injustice of our tax system will mean more pain for our lowest-income households while those at the top remain relatively unscathed. ...2 weeks ago
- Release: No growth under National, just cuts
The National Government’s decisions have hindered, not helped the economy. ...2 weeks ago
- Govt must act to avoid the worst of NIWA’s climate projections
New climate projections from NIWA underscore how urgently climate action is needed. ...3 weeks ago
- Release: More job losses as Government fails on manufacturing
The Government is failing the manufacturing sector with no plan for its future. ...3 weeks ago
- Iwi-led and partnered projects among those referred for Fast Track approval
Kia uru kahikatea te tū. Projects referred for Fast-Track approval will help supercharge the Māori economy and realise the huge potential of Iwi and Māori assets, Māori Development Minister Tama Potaka says. Following robust and independent review, the Government has today announced 149 projects that have significant regional or national ...5 hours ago - Fast-track to boost renewable electricity
The Fast-track Approvals Bill will list 22 renewable electricity projects with a combined capacity of 3 Gigawatts, which will help secure a clean, reliable and affordable supply of electricity across New Zealand, Energy Minister Simeon Brown says. “The Government has a goal of doubling New Zealand’s renewable electricity generation. The 22 ...5 hours ago
- Fast-track to drive transport projects forward
The Government has enabled fast-track consenting for 29 critical road, rail, and port projects across New Zealand to deliver these priority projects faster and boost economic growth, Transport Minister Simeon Brown says. “New Zealand has an infrastructure deficit, and our Government is working to fix it. Delivering the transport infrastructure Kiwis ...5 hours ago
- Fast-track projects released
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- Ruakākā recreation centre opened
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- Extra Government support for farmers and growers in Southland and parts of Otago
Agriculture Minister Todd McClay, and Rural Communities Minister Mark Patterson announced up to $50,000 in additional Government support for farmers and growers across Southland and parts of Otago as challenging spring weather conditions have been classified a medium-scale adverse event. “The relentless wet weather has been tough on farmers and ...2 days ago
- Government welcomes move to delay EU Deforestation Regulation
Trade and Agriculture Minister Todd McClay today welcomed a move by the European Commission to delay the implementation of the European Union’s Deforestation Regulation (EUDR) by 12 months, describing the proposal as a pragmatic step that will provide much-needed certainty for New Zealand exporters and ensure over $200 million in ...2 days ago
- Response to Ministerial Inquiry into School Property
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The Government has announced a new support programme for the residential construction market while the economy recovers, Housing Minister Chris Bishop and Building and Construction Minister Chris Penk say. “We know the residential development sector is vulnerable to economic downturns. The lead time for building houses is typically 18 ...2 days ago
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Environment Minister Penny Simmonds has confirmed the final appointee to the refreshed Environmental Protection Authority (EPA) board. “I am pleased to welcome Brett O’Riley to the EPA board,” Ms Simmonds says. “Brett is a seasoned business advisor with a long and distinguished career across the technology, tourism, and sustainable business ...2 days ago
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The Government has approved a $226.2 million package of resilience improvement projects for state highways and local roads across the country that will reduce the impact of severe weather events and create a more resilient and efficient road network, Transport Minister Simeon Brown says. “Our Government is committed to delivering ...2 days ago
- Doubling road rehabilitation this summer to prevent potholes
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- FamilyBoost payments make ECE more affordable
Parents and caregivers are now able to claim for FamilyBoost, which provides low-to-middle-income families with young children payments to help them meet early childhood education (ECE) costs. “FamilyBoost is one of the ways we are supporting families with young children who are struggling with the cost of living, by helping ...3 days ago
- South Pacific defence meeting fosters collaboration
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- Positive progress on Government health targets
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- Progressing remote building inspections
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- PPTA accepts charter schools
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- Government secures market access for blueberries to Korea
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- South Pacific Defence Ministers meet in Auckland
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Health Minister Dr Shane Reti today opened the refurbished Children’s Unit at Rotorua Hospital, which will provide young patients and their families in the Lakes District with a safe, comfortable and private space to receive care. “The opening of this unit is a significant milestone in our commitment to improving ...5 days ago
- Minor variations no longer major problem
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- New diplomatic appointments
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Associate Health Minister with responsibility for Pharmac David Seymour has welcomed the increased availability of medicines for Kiwis resulting from the Government’s increased investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our Government assumed office, New ...6 days ago
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Foreign Minister Winston Peters today wrapped up a week of high-level engagements at the United Nations in New York and in Papeete, French Polynesia. “Our visit to New York was about demonstrating New Zealand’s unwavering support for an international system based on rules and respect for the UN Charter, as ...6 days ago
- Final 2024 Action Plan focused on infrastructure
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- Four new laws to tackle crime passed in Q3
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Catch limits for several fisheries will be increased following a review that shows stocks of those species are healthy and abundant. The changes are being made as part of Fisheries New Zealand’s biannual sustainability review, which considers catch limits and management settings across New Zealand’s fisheries. “Scientific evidence and information ...1 week ago
- Reforming the building consent system
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- Cost-benefit analysis for potential third medical school completed
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The three deputy commissioners are trying to turn the public health system around. ...14 hours ago
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I’m buying 2800 grams of Mainland Cheddar first up, as a celebration.
That’s 2755 more than National’s waste identified will get me thus far.
That’s because it’s a Labour tax cut and Labour doesn’t believe in tax cuts.
A National tax cut, with the magical power of belief, will make us all rich, richer than astronauts.
An ACT tax cut and we’d never have to work again!
I don’t really see it as a tax cut, after all it’s just an inflation adjustment of the tax brackets that should have happened every year for the last 9 years, just not now.
And mine shall be going straight on to my credit card.
Captcha: demands$51 – heh I guess it wants my tax correction.
Might I suggest micro-credit.
Though yes, it is an inflation adjustment for many.
Can someone publish a graph of the overall tax rate including WFF and family benefit for a person with 1, 2 or 3 kids and a non-earning spouse, for say the last 40 years or more?
I imagine that the tax rate is around zero for an average family at present, which is lower than it’s ever been.
buy a harldly davison, take the exhaust pipe off and go on a pub crawl
Nah, us righties will use the small tax cut to invest/reduce debt and spend on my family. Most righties give more to charity than the left as we are taxed more anyway.
You lefties now have a choice on which charity to give to with your tax cut as you are so more compasionate than us righties. Useless organisms such as F&B are in dire need of your compassion. Personally I wouln’t give them the steam off my piss.
Sweet John, will you be speaking for The Right, From Now On?
“Most righties give more to charity than the left as we are taxed more anyway.” Does not compute.
I’ll be able to buy better quality pet food for my tea now! Whoopee.
move to remuera, buy an outboard motor and rev it up in a 44 gallon drum on saturday mornings to wake everyone up
Hookers and Blow
I intend to give it all to Judith Tizard
What infused said.
Infused – that comment reminded me of some of the bloodhound gang’s finest lyrics: “Well, that night I lost myself to ruby red lips, milky white skin, and baby blue eyes. Name was Russell.”
Oh, and what randal said, the second time. Randal, did you know that on a Wellington City Council Excessive Noise Infringement Notice there’s specific mention of a jet engine. Just some food for thought. I mean, has anyone had their jet engine confiscated before?
I’m going to spend it on a few beers celebrating the impending demise of this socialist government, although the Tories themselves are no great cause for joy.
Some of the Labour Chardonnay-sipping brigade will be looking for jobs, despite the fact most of them are unemployable: would you hire Tizard, Hawkins, Horomia, Moroney, Mahuta, etc?
Randal, awesome
Increase the share of household expenses I pay and actually get my savings account into four digits again for travel/massive student loan repayment purposes.
Mp,
Don’t know about now, but 10 years or so ago the Auckland City ones had specific mention of trains and aircraft on the list of offending items which could be confiscated.
Always made me want to lay some tracks in the backyard and run a noisy locomotive back and forth to see what would happen.
John Key has promised to give tax breaks upwards of $50 a week. This will be on top of the current Labour package. Wow! Maybe bring it up to $70 p.w. Because John Key is an honest man this promise will be honoured and you folk who fuss about borrowing for tax cuts are just trying to undermine the Key/English credibility. Shame on you! Trust Mr Key? Sure do.
Matthew Pilott
Home made jet engine : youtube
These people are among us.
Ianmac. I am calling their credibility into question, yes. Well spotted. Asking questions of those who would rule us is vital.
Hookers and Blow
Seeing as all our good drugs are imported (a connoisseur sneers at ‘P’) do you really want to be snorting up the current account deficit?
And the hookers are probably illegal immigrants, so that doesn’t help either.
Felix, I think the WCC one did mention a locomotive as well as a jet engine. Interesting that they would be specifically mentioned. My combine harvester is safe for the moment, it seems. Phew…
Burt – I can’t check the link now, but do remember a story on 60 Minutes or Inside NZ about a fella who made a jet engine. He lived on a farm and was a good few ks away from the neighbours, maybe 3. Turns out you could hear it 5 ks away!
I want to be one of these people. Well actually more interested in rockets… Hmm, maybe that would be better than buying large quantities of cheese on a weekly basis.
SP – I think Ianmac was engaging in a form of parody..
P.S Felix – please let me know if you ever do lay those tracks. In a similar fashion, I’ve always wanted to build a small private race track and have drunken races. As long as you have some serious safety gear, it could be quite a riot.
Fantastic result for National now with the TV3 poll out showing the right with 65 seats.
This is without the Maori party but I’m sure John Key will run an inclusive government and invite them in. So say 72 seats would be pretty comprehensive.
Now that the last 3 polls have shown that National is climbing again right when it needs to. Steve has been pretty quiet on this cant think why!!
The Winston affair and Helen and Michael Cullen’s gutter Politics are definitely hurting Labour when you consider the last Election Labours vote fell away on polling day it could be even worse.
http://www.3news.co.nz/Video/Politics/tabid/370/articleID/73495/cat/67/Default.aspx#video
small private race track
So, is your last name a pun?
That’s hardly environmentally friendly. Is your care for the environment a thin facade?
🙂
Phil. I’m sure MP would use electric cars.
MP. ah, maybe it is parody. That’s the danger of good parody, it becomes indistingushable from the real thing.
I suppose I’d have to plant a few trees or something. Maybe make my own biodiesel (before drinking – can’t be mixing methanol with sodium hydroxide after a tipple).
Wow. Rob thinks National, with an outright majority, would make policy concessions in order to bring in another party. I suppose I can hardly accuse him of stealing that comment from someone else, like many of the others! I don’t know what’s worse – his comments or him stealing other poeples’. At least with the latter there’s something sensible to argue.
I just found out from IRD that my tax rate is going down to 16cents in the dollar flat as a result of these cheese tax cuts. I’ll probably put it towards Body Corp rates on one of my properties.
Matthew Pilott
I suspect you would be less inclined to race anything while drunken if we didn’t have a no fault ACC system. However we do and I would be hypocritical to suggest we shouldn’t take full advantage of it.
So, how about a home made rocket – modified quad bike beach race. Rocket propelled quad bike frame, wheels brakes etc. Points for top speed and overall distance traveled. 3am on a Sunday morning would seem like a nice quiet time when few people are likely to be on a beach.
Perhaps if we have one successful sober race we could quickly graduate to 8 cans of beer in the three hours prior to racing. Cranking it up to tequila for the third race if the second hasn’t ended in tears.
I’m picking that few beaches have already banned the use of rocket propelled quad bikes but there may be some other covering council bylaws. These are likely to change from district to district. Any ideas ?
Hmm, I was thinking more like roll-cage modified Datsun 120y on a figure-8 track. Private property and all that…
Yeah ACC may be nice to have but that doesn’t mean I’d intentionally go out to maim myself, because it wouldn’t be a large financial burden.
MP: It just seems to me that a great deal has been made of the Key Tax cuts, and if he keeps his word on this he will be rewarded with applause. However, should it be a much smaller offer, for whatever excuse, this would be a serious blow to the trust of the people.
And if the exodus to Australia this year is even the 33,000 (rather than the John Keys claim of 88,000) could that be that those leaving are not seeking lower taxes, but fleeing from what Go t Right claim that National is onto a sure win. If the National prospects,tax cuts and all are significant, wouldn’t “they” stay???
Go the Right: Interesting that the TV 3 showed only 13% the difference between the two parties. Not 28% or 24% or 18% ? And Duncans maths is not too hot. 6-7 Maori seats that he says they should win, does not equal 4 seats in his totals. Perhaps you are not being very accurate either.
Ianmac, the 88,000 figure is outflow to the world not just NZ.
Put it towards my increased power and fuel bills due to the ETS.
I’d like to repeat the call that all of you who have been saying for 8 years we don’t need tax cuts, donate yours back to either
* The IRD
* Charity
I’m going to have to give it to Infratil as its subsidiary Fullers is creaming off every Waiheke commuter’s tax cut. Plus we can look forward to higher residential rates and public spending since the ferries will be full of oldies who will be travelling free. Cheers, Winston, another reason to blow NZF out of parliament.
Go The Right,
Which last three polls? By my count you’re wrong, but you might about three different last polls.
Reference? My memory is that the polls were all over the place just before election day so Labour’s vote would have been up on some and down on others.
My Tax cut will be saved for a few months and invested in the share market, lots of Bargins!!! I don’t invest in the NZ market, thanks to Aunty Helen, but I do invest in the Aussie market.
In terms of Charity donations, as the old say goes, “If you do charity work and then tell everybody about it, its not really charity”
Well I was planning on uping my contribution to Kiwisaver. However, after MPs comments above I am going to buy some jet engines and Datsuns so that I can drunkenly race jetpowered Datsuns around a figure 8 circuit in my back yard while enjoying hookers and blow.
Brett: You don’t support NZ business because our elected leader is a woman? I’m struggling to find a correlation here…
Matt – that specific reference to jet engines opens up some awesome possibilities.
It makes me want one of these even more, and I already wanted one a lot. I mean if you had a slingshot launch system on your roof or something you could fire it up, and when noise control came to visit you’d have a real life honest to goodness opportunity to cackle “you’ll never catch me” as you light up and soar out over the harbour.
Ok, so maybe i just want to soar out over the harbour. Or those mountains in the vid would be pretty sweet.
I might spend my tax cut on one. Can you use cheese instead of resin in carbon fibre?
Better still why not send your comments directly to http://www.giveitup.org.nz
Burt and MP:
Yes, Yes they are.
There’s a reason pulse jets never made it in to the big time – they’re bloody noisy.
Typical Socialist: can’t you do arithmetic? I pay over $25k pa in PAYE – by my carefully considered calculation, I’m not getting a “…reduction of up to 26% on the income tax [I] pay”. I’m putting my ‘tax cut’ towards air fares. I say ‘Ditch the Bitch’!