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Thread ID: 150923 2022-10-06 22:29:00 Political Parties and tax Cuts Neil F (14248) PC World Chat
Post ID Timestamp Content User
1488756 2022-10-06 22:29:00 I think National's latest thinking is still over reliant on its perceived "rich mates" followers base by saying it will remove the 39% rate and the Brightline Test. (Property investors).

In view of the struggles many people are facing with rising costs (and many were already struggling before the recent increases) I believe that a more productive approach for any political party would be to increase the scope of the 10.5% tax rate (on first $14.400 of income) to a higher figure e.g., $20,000. This would help far more people than those who are paid more than $180,000 p.a. -which is where the 39% tax rate kicks in.
The so called "trickle down" benefits theory has long been proven to be BS.

For those who want to do the arithmetic the saving in tax would be $392 (being the extra level $5,600 income ($20,000-$14,400) at 10.5% v at 17.5%). =$392.

This may not sound much, but every $ saved would help most. If the limit was raised to $25,000 the annual tax saved would be $742.

I am a retired Accountant (obviously not one of the high $ elites).

Comments please
Neil F (14248)
1488757 2022-10-07 23:47:00 I believe that a more productive approach for any political party would be to increase the scope of the 10.5% tax rate (on first $14.400 of income) to a higher figure e.g., $20,000. This would help far more people than those who are paid more than $180,000 p.a.


I agree however you need to tell the rich mates that not us.
And no doubt they won't care, it's not that these people don't understand, it's that they want it this way.
piroska (17583)
1488758 2022-10-08 00:27:00 Thanks for that Neil. Sounds pretty practical to me.

Ken
kenj (9738)
1488759 2022-10-08 23:12:00 how many $180k+ income earners actually pay the full tax?
i bet not many, if any. most high income earners typically have ways to "minimise" paying tax.
tweak'e (69)
1488760 2022-10-09 00:01:00 The Aussies have already shown us the way.

GST (Government Salvation Tax) 10% (not 15%) and Nil on unprocessed food.

All fixed. :)
B.M. (505)
1488761 2022-10-09 03:15:00 When these cuts are made, it is most unlikely that ANY politician will be discomforted, let alone bleed. R2x1 (4628)
1488762 2022-10-09 18:00:00 When these cuts are made, it is most unlikely that ANY politician will be discomforted, let alone bleed.

You have got that 100% right!
CliveM (6007)
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