New Zealand has been in recessions since the end of 2007, with negative growth in Q1 and Q2 2008. It is widely expected that Q3 will also be negative.

So Infometrics seem to be saying Q4 might be marginally positive, but then in 2009 Q1 and Q2 will be negative again.

If they are right, the decade of deficits just got worse.

It not only shows you how much your tax will be in Oct 2008, April 2010 and April 2011 but also what the same tax would be in Australia.

They have also calculated how much you need to earn to be paying less tax in NZ than Australia. It used to be $1,571,922 but now life gets better in NZ at merely $1,284,992.

The Visible Hand in Economics has also links to three other calculators

1. Infometrics which gives you the annual and weekly reduction in tax and percentages
2. Labour, which includes WFF for the breeders
3. NZIER which has an Excel spreadsheet

Worth remembering that the annual figure for Oct 2008 will be half that, as it only applies for half the year.

NZIER helpfully also shows you what your tax would have been in 2000 in both NZ and Australia. So if you are on $100,000 you would have been paying the same tax in 2000 ($22,057 in NZ and $22,446 in Australia). In 2010 it will be $30,588 and $26,569 respectively. This assumes 3% wage growth.

Matt Nolan at TVHE also looks at the impact of both tax cuts and huge spending increases on inflation. He thinks it is possible inflation may hit 5%, which would suggest interest rates staying high for a while yet.