2009 tax rates
October 8th, 2008 at 1:17 pm by David Farrar
I have done these myself. I think they are accurate but they were done quickly. If people spot an error, let me know.
This shows how much annual tax you pay at income levels as of today (taking into account Labour’s tax cuts) and how much your annual tax will be starting in April when National’s cuts would take effect.
The biggest percentage reduction in tax is those at the lower end of the income scale.
This is based on the following:
- 12.5% to $14,000
- 21% to $48,000
- 33% to $70,000
- 38% over $70,000
- A $520 rebate for incomes from $24,000 to $44,000 then abating at 13% until $48,000
Tables for 2011 to come.
Tags: National, tax cuts, tax rates
October 8th, 2008 at 1:29 pm
This clearly gives a much larger tax cut to low income working class kiwis than Labour’s package. Then again Labour stopped representing the working class a long time ago, preferring instead to represent upper middle class feminists, homosexuals, and academics.
I know a lot of people in those first two earning brackets and this will make a substantial difference to them.
I think National just won the election.
Vote:October 8th, 2008 at 1:29 pm
Interesting. What happens to the numbers if you factor in the reductions of the state and employer kiwisaver contributions?
[DPF: The employer subsidy from the Govt do not affect what goes into a Kiwisaver account. The 2% less from the employer (if the employer goes for the minimum) is equal to $1,000 less for someone on $50,000, so around 40% of the $2,420 from the total package)
Vote:October 8th, 2008 at 1:42 pm
This is a very well balanced tax cut. Well done National
Vote:October 8th, 2008 at 1:43 pm
Danyl, most people I know on $40 aren’t in Kiwisaver because they haven’t got enough money to pay for the groceries. You’re backing another losing argument.
Vote:October 8th, 2008 at 1:44 pm
Labour, the party of the low income worker – yeah right.
Guess who stands to gain the MOST by shooting through to Aussie (and by the way lots of them do).
That’s right – the lowest income workers. Pay rates about 50% to 100% higher, and NO TAX AT ALL on the first 18 grand of Aussie dollars, and the lowest rate goes up into the thirties somewhere – BAH.
There is not one economic DISINCENTIVE signal this administration could have sent that it has failed to send, for work, growth, and efficiency.The biggest gains under this administration relative to everyone else, have been for the least productive. Even the lowest income earners who were prepared to work, have been given the signal that not working at all is an option worth considering.
Vote:October 8th, 2008 at 1:53 pm
PhilBest – I agree with you. Remember that the recession and awful fiscal crisis came before the international financial melt down. We are now bearing the costs of Labour’s cavalier attitude towards productivity growth. They really seem to believe that New Zealanders will produce fixed amount of wealth, regardless of incentives, and their job is just to divvy it up.
That has led to 10 years of deficits. Labour’s response? “Steady as she goes”. Sounds like the Captain of the Titanic.
Vote:October 8th, 2008 at 1:57 pm
Bugger, the phone went before I could edit the $40 to $40k.
Vote:October 8th, 2008 at 2:03 pm
Reducing the minimum contribution to 2% will actually allow more people to take it up. At present the 4% was too tough for lower income families.
Vote:October 8th, 2008 at 2:06 pm
Reducing the minimum contribution to 2% will actually allow more people to take it up. At present the 4% was too tough for lower income families.
Oh dear. Is that your official answer?
Wait – I’ve just seen DPFs official answer:
The employer subsidy from the Govt do not affect what goes into a Kiwisaver account. The 2% less from the employer (if the employer goes for the minimum) is equal to $1,000 less for someone on $50,000, so around 40% of the $2,420 from the total package
Now I’m confused. Will the government still match your payments with a credit of up to 4% or $50 /week?
[DPF: The employee credit is unchanged - matches employee contributions up to $20 a week. This will give an incentive for some employees to put in more than 2%]
Vote:October 8th, 2008 at 2:11 pm
This will please a lot of the mindless Liarbore masses but most probably they wouldn’t understand or give a flying fuck about tax rates it’s the cash at the end of the day that counts mate. I had a vain hope that National would come out with something more exciting but no, more of the same. Yes it is better then what the suckholes were offering but where is the imagination, where is the vision, what does this tax scheme offer in the way of inducements to people that might see NZ as a new home or ones that might stay, sweet piss all I would say. Same old wealth redistribtuion wraped up in a new pigs ear.
Vote:October 8th, 2008 at 2:18 pm
That has led to 10 years of deficits. Labour’s response? “Steady as she goes”. Sounds like the Captain of the Titanic.
Actually the captain of the Titanic did at least recognise he was ailing into an iceberg and try to turn the ship aside. (Ironically, this made things worse, because he scarped the ship along the berg ripping the whole side open instead of just smashing in the bow compartment.)
I suggest the metaphor might be “Oooh! Look at those rapidly approaching bright lights! They might be dangerous. Lets curl into a ball and keep absolutely still. So long as the prickles are on the outside, nothing can harm us.”
Vote:October 8th, 2008 at 2:42 pm
The employee credit is unchanged – matches employee contributions up to $20 a week. This will give an incentive for some employees to put in more than 2%
I kinda feel like you’re spinning me here DPF. The employee credit IS changed – it was set to increase to 4% and it will now remain at 2%; so that’s $25 per week LESS for those who were paying in $1000/year.
And it sounds as if the state contribution has also been lowered from 4% to 2%. If so then that’s another $25/week less for people paying in $1000/year.
I’m no expert and I’m happy to admit I might be wrong but it looks to me like a big chunk of taxpayers get their tax cut totally canceled out by the loss to their Kiwisaver contributions.
Vote:October 8th, 2008 at 2:58 pm
Danyl – yes if you are at only $25,000 a year then as your personal contribution will be $10 a week then the matching credit will be only $10 a week.
You may want to consider the merits though of a 4/4 scheme which took so much from you when working you have a higher income in retirement than when working. And also 2/2 means lower income workers can afford to go into the scheme – a scheme they were paying for already through their taxes.
Vote:October 8th, 2008 at 9:15 pm
And National still keeps the envy tax.
Vote:October 9th, 2008 at 12:08 am
The only way to get rid of the envy tax is to vote ACT.
Vote:October 9th, 2008 at 12:22 am
I would normally give my party vote to ACT but there is just too much riding on this election. Helen must go.
Vote:October 9th, 2008 at 4:11 am
In the cold light of day on 9 November I’m absolutely certain that John Key will do a deal with ACT. If he doesn’t cut a deal to form a government then that’s his political career effectively over.
A National/ACT government is the only way to achieve change the country needs.
37c for $70,000+ just isn’t good enough after three years in power. National can play all the deception games it wants to up to 8 November. Its first term is going to be measured on results and doing what Labour would do isn’t a pass mark.
Vote:October 9th, 2008 at 1:58 pm
still 39%
+Gst.
National is Labour Lite.
Vote:I’m waiting for the capital gains tax.
October 9th, 2008 at 1:59 pm
Lee
ACT must have the party vote.
National must have a handholder to keep them honest.
Vote: