Source: Taxpayers Union
Labour have just announced a new tax rate of 39% on incomes over $180,000. This is in contrast to Australia that has legislated to cut taxes.
Of course the 39% new tax rate is just the beginning. If they have a Labour/Green Government then they could strike a deal to implement part of the Greens’ tax agenda also.
But even with just what Labour is promising, this will see every New Zealander who earns up to and including $300,000 a year paying more income tax in New Zealand than they would in Australia.
Income
NZ
Aust
Extra tax NZ
$ 10,000
$ 1,050
$ –
$ 1,050
$ 20,000
$ 2,520
$ 342
$ 2,178
$ 30,000
$ 4,270
$ 2,242
$ 2,028
$ 40,000
$ 6,020
$ 4,142
$ 1,878
$ 50,000
$ 8,020
$ 6,592
$ 1,428
$ 60,000
$ 11,020
$ 9,592
$ 1,428
$ 70,000
$ 14,020
$ 12,592
$ 1,428
$ 80,000
$ 17,320
$ 15,592
$ 1,728
$ 90,000
$ 20,620
$ 18,592
$ 2,028
$ 100,000
$ 23,920
$ 21,592
$ 2,328
$ 110,000
$ 27,220
$ 24,592
$ 2,628
$ 120,000
$ 30,520
$ 27,592
$ 2,928
$ 130,000
$ 33,820
$ 30,592
$ 3,228
$ 140,000
$ 37,120
$ 33,592
$ 3,528
$ 150,000
$ 40,420
$ 36,592
$ 3,828
$ 160,000
$ 43,720
$ 39,592
$ 4,128
$ 170,000
$ 47,020
$ 42,592
$ 4,428
$ 180,000
$ 50,320
$ 45,592
$ 4,728
$ 190,000
$ 54,220
$ 48,592
$ 5,628
$ 200,000
$ 58,120
$ 51,592
$ 6,528
$ 210,000
$ 62,020
$ 56,092
$ 5,928
$ 220,000
$ 65,920
$ 60,592
$ 5,328
$ 230,000
$ 69,820
$ 65,092
$ 4,728
$ 240,000
$ 73,720
$ 69,592
$ 4,128
$ 250,000
$ 77,620
$ 74,092
$ 3,528
$ 260,000
$ 81,520
$ 78,592
$ 2,928
$ 270,000
$ 85,420
$ 83,092
$ 2,328
$ 280,000
$ 89,320
$ 87,592
$ 1,728
$ 290,000
$ 93,220
$ 92,092
$ 1,128
$ 300,000
$ 97,120
$ 96,592
$ 528
$ 310,000
$ 101,020
$ 101,092
$ (72)
A person earning $40,000 a year pays 45% more income tax in NZ than Australia. On $70,000 you are paying 11% more here than Australia and on $200,000 you are paying 13% more here than Australia.
The amount of revenue this will bring in is trivial compared to the amount of extra spending and debt Labour is incurring. So beyond doubt, if re-elected, they’ll then say they need to increases tax even more.
National on the other hand says it is unfair that inflation pushes you into a higher tax bracket even when your disposable income remains constant, so National will inflation adjust tax brackets to stop inflation pushing up your tax bill every year.
David Farrar is a Cofounder of the Taxpayers’ Uion. This post originally appears on Kiwiblog.co.nz
