tax cuts for the rich

seems to be the approach under National

middle to high income households, especially without kids, get the tax cut benefits

low-income households get nothing it seems

this is very Tory stuff isn't it

What are the tax rate changes?

The media insist on reporting stuff like the average wage earner will be $18 a week better off and stuff like that, rather than actual rate changes.

lol the rich were getting away with 'tax cuts' under Labour if you read the press

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10547084

According to this pdf on Nationals website:

From 1 April 2009

$0 – $14,000 (12.5%)
$14,001 – $48,000 (21%)
$48,001 - $70,000 (33%)
$70,001 and over (38%)

From 1 April 2010

$0 – $14,000 (12.5%)
$14,001 – $50,000 (21%)
$50,001 - $70,000 (33%)
$70,001 and over (37%)

From 1 April 2011

$0 – $14,000 (12.5%)
$14,001 – $50,000 (20%)
$50,001 - $70,000 (33%)
$70,001 and over (37%)

You can work out how much you will get using this calculator and adjusting the values accordingly.

Awesome, we have a government that rewards people who do well in life instead of encouraging them to have 9 children and leave them home at the pub whilst you spend your benefit.

The 'rich' get more money back because they pay more money! I don't think it goes far enough, tax should be flat except a tax free bracket (like the first $5000/$10000 is tax free), that's the only fair way to do it imo.

Do you see the leap of logic you made there?

And do you understand the law of diminishing utility?

I can be inherently stupid at tax law.

But, wasn't the previous tax bracked of 19.5% applied to income below $20k (or something that was higher than $14k). I could be wrong, but I get the feeling that 21% on the $14k threshold is in fact 'more expensive' on the lower end of the bracket?

you are probably thinking of pre-October tax rates when we only had 3 different rates, compared to now where we have 4.

pre-October Tax rates:
$0 – $38,000 (19.5%)
$38,001 – $60,000 (33%)
$38,001+ (39%)

Pre-October, someone on $40k would take home $604 after tax (including ACC Levy).. now they would take home $619 (including ACC levy which was increased from 1.3 to 1.4%).

i notice that my tax bracket doesnt go down at all over the three years

=(

$0 – $14,000 (12.5%)

The rebate system created a fourth tax bracket, I don't know the exact figures but I think the lowest bracket was $9880 and the rebate meant rate was somewhere around 12.5%. Also the U$38,000 rebate also gave a further reduction depending on how close to $38,000 your income was. There was also a child rebate in there too.

Also have National made any changes to ACC Earner Premium which was another 1.2% on top of your tax?