And created a nightmare, since there was introduced a disparity between the company rate and the top personal rate, so they had to plug a lot of holes to stop people opting to become a company. Now people have even more incentive to do that, since the difference is a full 9% of gross.

The tax breaks for employers only end up being of any value if the company is making a profit. If the company is break-even, then kiwisaver contributions will push it into a loss. There are a lot of small companies in this boat.

I spoke with some of my employees as well about it, one said he couldn’t afford to enter the kiwisaver scheme because he didn’t have the spare 4% – problem of having a mortgage on an Auckland home. Actually since it’s 4% of gross salary, that’s about 6.5% of take-home pay.

This will definitely put downward pressure on salaries, so in the end, the cost will be passed on to the people. Meanwhile, the government gets another large fund to play with. I hope they don’t spend it.

I only have one wart

level for the word CORRUPTION !!!

From that link: “The Government’s view is that people on high incomes can — and indeed should — make a greater contribution to paying for improving New Zealand’s social fabric.”

The problem is TerryJ, the socialists can’t understand that even with a flat tax rate a person earning $140,000 pays ten times more tax than someone earning $14,000. IE They already “make a greater contribution to paying for improving New Zealand’s social fabric.”

They just can’t get that concept.

Hilarious watching the Labour shills here trying to disown Chris Trotter, in classic irony-free Orwellian style. Eurasia has always been the enemy…

Check your calendar is now 2007.

So now tyou do remember Labour promised BEFORE the election to create a new tax bracket
There has been no change in Labours policy. There was no promise that it would be indexed then or since probbaly because they won each of the following elections

But Labour has pinched nationals charitable donations policy !
Thanks John, you do have some ideas.

But Look at National and Kyoto

Jenny: Signs the Treaty
Bill: Do nothing
Don: What warming
John: In 50 years from now… but dont believe anything I said before

Nov 25th 1999. Was the legislation even passed then? I thought it passed in the first sitting of the house in 2000. You are also quoting a Journalists ‘skinny’ on the situation.

I’ll take this interpretation. My reference is from an MP so I’ll claim it’s more accurate than yours.

Labour’s Pledge Card (20/07/2005)

“one promised pledge was that no more than 5 percent of taxpayers would pay the highest tax rate of 39 cents..”

Count me out as a National party supporter, although I did like their policy for removing the threshold on charitable donations. I’m glad Labour had that fresh idea for the budget, for the future.

Simo, tobacco tax has gone up more than that. It went up about a buck overnight back in 2000 alone. I remember it quite clearly, as my girlfriend at the time stopped voting Labour because of it.

But here is a NZ Herald story from Nov 25 1999
BEFORE THE ELECTION which is 2 days after this storey

12:00AM Thursday November 25, 1999

Election 1999
By VERNON SMALL and ANDREW lAXON

Imagine it is Sunday and Jim Anderton is winging his way to Wellington for the first crucial meeting with the incoming Prime Minister, Helen Clark.

There is broad agreement between the parties in many areas – anti-defection legislation for MPs; raising tax to 39 per cent on personal income above $60,000; returning to a state monopoly on ACC; and reducing the interest burden on students.

http://www.nzherald.co.nz/section/story.cfm?c_id=543&objectid=103824

raising tax to 39 per cent on personal income above $60,000

No wonder you follow the National party, its where you get to make things up

ps its all to easy, make it harder for me next time

1: If your a Mum and Dad in the 15% sucker bracket – you lose
2: Self employed and own company and pay profit as salary to shareholders- you lose
3: Auckland commuter – you lose
4: An employer taking into account self employed salary structure with Kiwi Saver – you lose
5: IRD given $35m to chase rental property buyers and flickers – you lose.

The see-saw has now got a real fat bastard sitting on the other end.

There are more if people would like to add,

I can smell the rain falling in Aussie already!

“Labour politicians are liars, proven and substantiated.”

What is more is that in the 2002 election campaign Helen Clark stated that she had kept all of the 1999 election promises.

So it’s doubly proven and substantiated.