More tax tracking
June 12th, 2012 at 1:00 pm by David FarrarMaxim has done some tax tracking scenarios, for four different people or households. They are:
- Minimum wage earner
- Median income earner
- Median income household
- High income household
The minimum wage earner pays an average 13.5% tax being $3,320. The high income household pays $33,240 tax. Some of the breakdown of what that goes on is:
- NZ Super $4,745
- Family Tax Credits $995
- DPB $857
- Invalids $622
- Accom Supp $580
- DHBs $5,611
- Primary schools $1,355
- Tertiary tuition $1,121
- Secondary schools $1,010
- ECE $653
- Student loans $330
- Tertiary allowances $289
- Defence $926
- KiwiSaver $332
- Debt $1,748
June 12th, 2012 at 1:07 pm
What is the biggest item actually? Nada, nada, yada, yada, can’t see anything, won’t do anything.
Let’s just borrow another $250 million this week.
Vote:June 12th, 2012 at 1:22 pm
I didn’t realise Maxim tracked tax. I guess they had to diversify sometime, the internet must be killing their adult magazine business
Vote:June 12th, 2012 at 1:53 pm
“The high income household pays $33,240 tax. ”
LOL thats under $100k (depending on the spend on GST-able items). Hardly “high” income.
Vote:June 12th, 2012 at 2:08 pm
Hardly high indeed. And yet they pay almost 10x more tax.
Vote:June 12th, 2012 at 2:34 pm
@ KG and EWS
If you looked at the report you would see that the ‘high income’ household is 110k lawyer + 40k teacher for 150k total, while the minimum wage worker is on 24.5k total (for some reason they have calculated it at 35 hours a week. So 6x the income, 10x the tax. That doesn’t seem entirely unreasonable to me.
Vote:June 12th, 2012 at 3:13 pm
Did they factor in government assistance- does the minimum wage worker get any and what if the median household had kids. How does that change their tax position (ie. WFF).
I think this only paints half the picture.
Vote:June 12th, 2012 at 7:01 pm
@aitkenmike
It never seems unreasonable when it’s other people’s money.
Vote:June 12th, 2012 at 7:02 pm
@berend,
Really?? Try tallying up the education related payments – they exceed Super.
Which is at it should be
Vote:June 12th, 2012 at 7:05 pm
^^ which also further illustrates the subsidization of publicly funded schooling from parents (who are more likely to be) sending their children to private schools…
Vote:June 12th, 2012 at 8:31 pm
The ‘debt’ figure was already out-of-date and too low by the time this post was written, and out-of-date and too low when you read this comment. Public debt is a cancer when it’s used to fund successive re-election aspirations.
Vote:June 12th, 2012 at 9:21 pm
As others have said, $150k is far from a high income – a proper high income household should be earning 150k every 3 months at a minimum – even 600k p.a. is hardly high income.
We’ll never progress wages in NZ if we continue to believe abysmal earnings such as these are high income. Maxim is part of the problem.
Vote:June 12th, 2012 at 10:33 pm
That’s just staggering….
All the noise about what is and what isn’t high income. Just think, for every circa $30,000 you pay in tax circa $10,000 goes on welfare and circa $6,000 goes on health. The cost of financing is about the same as law and order and together they cost more than core govt services. What a fucking shambles.
Vote:June 12th, 2012 at 11:43 pm
Raising the ‘retirement’ age to 67 gradually won’t save much and will take a long time to be effective. Why keep paying the old age welfare benefit to people with plenty of money and still working? All other welfare benefits are income tested and means tested.
Vote:June 13th, 2012 at 12:50 am
I know a tax cut I would like to see. If you just cut the tax on savings to zero, or made the threshold for higher tax rates high amounts of savings, like 33% for over 200000, people would save shitloads more. Savings should be more incentivised. I don’t like it that on top of being raped by inflation, because I earn just a bit over the low lowest threshold my savings get taxed at 17.5% that pisses me off, as does the cost of financing our goddamn debt.
Grrr.
Vote:June 13th, 2012 at 8:45 am
Kiwiblog – where $150,000 per year is peanuts
Vote:June 13th, 2012 at 8:54 am
And for spending three grand a year supporting others’ benefits (seven grand including super), this family is thanked by the left for their contribution, and not at all vilified, because they know that without families like this everyone would be worse off.
Vote:June 13th, 2012 at 4:29 pm
I actually object to our 39% tax rate as well as all the sods who use trusts to rort everyone else by not paying their fair share.
Vote:Mostly I object to WFF instead of tax cuts, then at least we could say “so why don’t you contribute your fair share”?
97% is a big % of the total personal tax take from 168,000 individuals.
We should be lauding and looking after them not moaning and looking to squeeze some more.
June 13th, 2012 at 8:55 pm
We don’t have a 39% tax rate.
Vote: