Monday, November 21, 2011
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.