New Zealand Taxes Poor More Than Aussie
New Zealand stifles its poor with much heavier taxation than in Australia and because half of New Zealand income earners earn less than $28,000 it is also stifling our domestic economy. The median wage in Aussie is over $40,000. A simple comparison between the two tax regimes makes interesting reading.
New Zealand taxes all those earning $14,000 or less at 10.5 cents for every dollar while Australia doesn't tax the first $6,000 of earnings at all. In New Zealand we tax those who earn between $14-$45,000 17.5 cents for each dollar and Australia only taxes 15c from $6,000 through to $37,000. For those at the top end of earnings, $70,000 and above, New Zealanders get hit by 33 cents. Australia keeps ranking up the taxation for those who are better off, those earning $80,000 to $180,000 have a 37c tax and those above $180,000 are taxed at 45 cents in every dollar. Imagine our Government's increase in revenue if we did that, no asset sales needed.
GST is set at 15% in New Zealand while it is only 10% in Australia and the minimum wage here is $13 and hour while across the ditch it is $15.51.
Australia also has a capital gains tax while we do not.
No wonder a huge number of our working families need financial support and can't survive on their incomes.