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August 22, 2005

Under $50,000 and maximum 18% tax

National

If you earn up to $50,000, then under National your effective tax rate will be between 15% and a maximum of 18%. That's great for letting low to middle income workers keep more of their money - rather than forcing them to pay more tax so benefits can be paid to families with children earning over $100,000

And for those who claim the 'rich' will get the most benefit from the tax cuts. Well for those who earn over $100,000 they will go from paying 25.1% of all personal tax to 26.3%. Yes as the biggest taxpayers they get the biggest nominal amount back, but they do not get the biggest percentage - in fact they end up paying a greater share of the tax take.

The income which gets the largest percentage decrease is $50,000 - those on $50,000 will have their tax will reduce by a whopping 20.7%.

Also those on national super will benefit by $560 for a married couple, as the pension is calculated as a percentage of the average after tax wage.

Posted by David P. Farrar at August 22, 2005 03:02 PM | TrackBack
Comments

If on $40,000 you'll save $950 - how pathetic, whats the point?

Nationals tax policy is a total fizzer. Its disappointing because I think that tax relief is in principle an excellent idea.

How come nobody talks about dropping the GST rate? Seems to me that would be a good place to start...

Posted by: Rex Hammer at August 22, 2005 03:19 PM

I must say I'm quite impressed with the whole national tax policy. As a currently undecided voter, I'm definitely swinging towards National. Labour have never done a thing for me or my partner - as students, first home buyers or now as full-time workers with no kids.

With regards to the GST Rate, I couldn't agree more. A drop back to 10% would be a brilliant place to start.

Posted by: Sandra at August 22, 2005 03:27 PM

Is $950 saved more than $0 saved under Labour? The answer is yes. That kind of money, especially in difficult circumstances like myself and my family are in, will make all the difference in the world. I like National's Tax policy. No, actually, I love it. EVERYONE gets to share in some of the massive surplus hoarded by Labour for no reason in the last 6 years.
What would the alternative have been for me if I wanted to support Labour? Not one cent returned to me - not one dime. So it is completely obvious who I am going to support (it has never changed actually).

Posted by: Michael Taylor at August 22, 2005 03:31 PM

National's policy does very little for those on over $100K.

Not getting my vote because of that.

Definitely an example of an "anti-rich" policy.

Posted by: Cathy at August 22, 2005 03:32 PM

Actually the policy gives a decent amount back on over $100K. Consider someone on $110,000. They would get back $2700 starting April 1 06, and $4800 back starting April 1 07.

Posted by: Michael Taylor at August 22, 2005 03:38 PM

DPF says 18% on income under $50,000 , Don says 19% , who do we believe ?. Cuurent rate is 19.5% up to $38,000
Plus ACC levies of 1.2% dont forget on income up to $92,000

Posted by: russ at August 22, 2005 03:41 PM

18% is the average tax rate
19% is the marginal

Posted by: Emmess at August 22, 2005 04:08 PM

Russ, the marginal rate will be 19%. The effective rate will be lower because the first $12500 of income will be taxed at 15%.

Posted by: Graeme Edgeler at August 22, 2005 04:10 PM

The borg collective will be rushing away and tweaking their policy. If you are a lesbian and were raped and have one child and you earn less than $25,000..... you guessed it you will be better off under the borg. So they tweak their policy for her. I know a student with a loan of $200,000 will be......better off under the borg collective. Look I am sure they will find people becuase their peculiar circumstances will be better off with the borg collective though I think it will be hard for the borg to beat this. So they will go on about debt and you guessed it National will flog off everything to pay for it.

Posted by: tim barclay at August 22, 2005 05:29 PM

I believe that this election is starting to become more and more less about the policies and rather the overall vision for this country.

Each party is saying pretty much the same thing now with mild pros and cons swinging to each however on one hand we have National advocating individual responsibility and accountability vs Labours socialist agenda of making everybody completely reliant upon the state.

I suspect that history will look back on the result on this election as either the first steps back towards a society lead true leaders or continued on the new "Long March" with Comrade Helen.

Posted by: Jackman at August 22, 2005 06:51 PM

Well said Jackman

Posted by: ZenTiger at August 22, 2005 08:52 PM
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