NOTE: The incomes in this Table refer to individuals not families. For example, a family with two earners that each make $41,000 would pay no extra tax.
|
INCOME |
MARGINAL TAX % |
INCOME |
TOTAL TAX % |
TOTAL MAX $ |
TOTAL DIFFERENCE |
|
0 – 10,000 |
nil |
10,000 |
nill |
nil |
Up To $1,530 |
|
10 – 20,000 |
24 |
20,000 |
12.00 |
2,400 |
841,000 kiwis will average $1,400 less tax |
|
20 – 30,000 |
26 |
30,000 |
16.67 |
5,000 |
372,000 kiwis will average $984 less tax |
|
30 – 40,000 |
30 |
40,000 |
20.00 |
8,000 |
339,000 kiwis will average $428 less tax |
|
40 – 50,000 |
40 |
50,000 |
24.00 |
12,000 |
314,000 kiwis will average $232 more tax |
|
50 – 60,000 |
42 |
60,000 |
27.00 |
16,200 |
225,000 kiwis will average $1,009 more tax |
|
60 – 70,000 |
46 |
70,000 |
29.71 |
20,800 |
146,000 kiwis will average $1,794 more tax |
|
70 – 100,000 |
50 |
100,000 |
35.80 |
35,800 |
205,000 kiwis will average $4,943 more tax |
|
100,000+ |
54 |
200,000 |
44.90 |
89,800 |
138,000 kiwis will average $16,717 more tax |
- No tax on the first $10,000 means that all on that income will keep the $1530 they pay at present; super and benefits will be adjusted to give those receiving them the full value of our tax cuts plus some extra for married couples
- The 67% of New Zealanders under $41,000 will pay less tax
Comparing our table with Labour’s tax cuts promised for 1 Oct 2008
By how much will annual after-tax income increase
|
Income |
Under Labour |
Under Alliance |
Difference |
|
10,000 |
+280 |
+1,530 |
+1,250 |
|
20,000 |
+624 |
+1,230 |
+606 |
|
30,000 |
+624 |
+729 |
+105 |
|
40,000 |
+832 |
+700 |
-132 |
|
50,000 |
+832 |
-630 |
-1,462 |
|
60,000 |
+832 |
-1,530 |
-2,362 |
|
70,000 |
+1,456 |
-2,226 |
-2,682 |
|
100,000 |
+1,456 |
-5,530 |
-6,886 |
|
200,000 |
+1,446 |
-11,800 |
-13,246 |
- Up to $34,000, Kiwis benefit more from the Alliance: 60% of those who pay tax earn that much or less
- At $50,000, Labour begins to offer significantly more: only 24% of those who pay tax earn that much or more
- So Labour thinks those who earn 200,000 a year need an extra $1500 to spend; we believe they could spare an extra $12,000 to help those who have a fragment of their wealth
Tax calculations
|
Incomes |
No (1000s) |
Tax (mil$) |
MR (%) |
OR-top (%) |
AMR |
AOR-top |
Atax |
Difference |
|
0 |
239 (7%) |
0 |
—- |
—- |
—- |
—- |
0 |
0 |
|
1-10,000 |
442 (14%) |
248 |
15+ |
15.30 |
0 |
0 |
0 |
-248 |
|
10-20,000 |
841 (26%) |
1,968 |
21 |
18.15 |
24 |
12.00 |
706 |
-1262 |
|
20-30,000 |
372 (11%) |
1592 |
21 |
19.10 |
26 |
16.67 |
1226 |
-366 |
|
30-40,000 |
339 (10%) |
2,191 |
23.4 |
20.175 |
30 |
20.00 |
2046 |
-145 |
|
40-50,000 |
314 (10%) |
2,895 |
33 |
22.74 |
40 |
24.00 |
2,968 |
+73 |
|
50-60,000 |
225 (7%) |
2,814 |
33 |
24.45 |
42 |
27.00 |
3,041 |
+227 |
|
60-70,000 |
146 (4%) |
2.338 |
39 |
26.53 |
46 |
29.71 |
2,600 |
+262 |
|
70-100,000 |
141 (6%> |
4541 |
39 |
30.27 |
50 |
35.80 |
5,238 |
+697 |
|
100,000+ |
138 (5%) |
7786 |
39 |
34.653* |
54 |
44.90* |
10,093 |
+2307 |
|
NET GAIN |
+1.545 billion dollars |
(* Refers to an income of $200,000)
- At 41,000, total tax is equal at $8,040, so everyone under that pays less tax
- Equals 2/3rds of those who actually pay any tax
- Lower 67% paying a total of $2.021 billion less
- This equals almost $1000 (998) per person and those under 10,000 of course are exempt from their present tax of $1,530
- The top 33% will pay $3.566 billion more, which better than balances out the loss for the bottom 67%
- This equals $3,567 per person
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