This compares the situation at the beginning of the year, to what it will be like in year three of a National Government.
Again any errors are mine. What it shows is a very significant package – earners in the $30,000 to $50,000 range get their tax bill reduced by 20% to 25%. Those on $100,000 get only a 12% reduction – and proportionally less as income grows (8.1% at $200,000).
Now Labour did deliver the first of the four stages of this tax cut package. They should get some credit for it. Sure it took nine years, lots of screaming, a previous package which they cancelled after the election, only did it because National and the public forced them to, and an admission now they in hindsight they wish they hadn’t done it, but for Labour that is as close as you will get
The rates used in this calculation are:
- 12.5% to $14,000
- 20% to $50,000
- 33% to $70,000
- 37% over $70,000
- A $520 rebate for incomes from $24,000 to $44,000 then abating at 13% until $50,000