Forget Aussie, PM Advises
From Stuff: http://www.stuff.co.nz/stuff/0,2106,3597243a10,00.html
In 1999 Dr. Cullen defended the Labour party proposed tax changes by telling the us that the proposed 39% tax rate was moderate compared to the top tax rate of 48% in the USA.
What he failed to mention was that that rate (48%) only kicked in when an individuals earnings were in excess of $400K USD. (IE: approx $604K NZD - over 10 times the amount where the top NZ rate kicks in)
So when Ms Clark claims 'Tax rates are higher in Australia' - perhaps she should back up her claim with some stats showing the real tax rates for each income bracket.
Perhaps a simple graph showing how much an Australian vs a New Zealander would take home using income brackets as used for the census forms. Information on minimum and average incomes. Additionally showing (on the same graphs) eligibility levels for NZ Community services cards would also help compare her assertion that compulsory medicare adds to the tax as well.
I'm sure her claims are complete and honest but I would like to see how she arrived at these statements.
In 1999 Dr. Cullen defended the Labour party proposed tax changes by telling the us that the proposed 39% tax rate was moderate compared to the top tax rate of 48% in the USA.
What he failed to mention was that that rate (48%) only kicked in when an individuals earnings were in excess of $400K USD. (IE: approx $604K NZD - over 10 times the amount where the top NZ rate kicks in)
So when Ms Clark claims 'Tax rates are higher in Australia' - perhaps she should back up her claim with some stats showing the real tax rates for each income bracket.
Perhaps a simple graph showing how much an Australian vs a New Zealander would take home using income brackets as used for the census forms. Information on minimum and average incomes. Additionally showing (on the same graphs) eligibility levels for NZ Community services cards would also help compare her assertion that compulsory medicare adds to the tax as well.
I'm sure her claims are complete and honest but I would like to see how she arrived at these statements.
posted by Gardener at 2:18 PM
2 Comments:
Compulsory medicare def adds to the effective tax. In Aussie you don't actually pay the medicare levy until you hit a certain income threshold, but then you incur 1.5% (I think) over that. So effectively it is just a hidden tax threshold.
But agree completely with the other points.
Yes I've lived in Aussie and what you say sounds about as I remember it. But it's nice that all people get the benefit not just people who don't pay tax. So yes it's a tax, but it's got that 'kinda fair' feel to it.
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