Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


What a difference a decent tax cut would make

What a difference a decent tax cut would make

Thursday 27 Jan 2005

Rodney Hide - Press Releases -Other

ACT Leader Rodney Hide today revealed figures that showed the best way to boost workers' pay packets and help them pay off debt is to cut taxes.

Last week in his state of the nation address, Mr Hide mooted dropping the top and business tax rate to 25 cents in the dollar and extending the 15 cent rate up to $38,000. As a result someone on $40,000 a year would be $35.86 better-off a week while someone on $60,000 would be $66.55 better-off a week.

Mr Hide said ACT's tax proposals are in fact equivalent to a seven percent pay-rise for the average worker.

"To get a $35.86 increase in net income under the present tax regime, a person earning $40,000 would need their boss to reward them with a seven percent gross pay increase!"

Figures released by Mr Hide show that an average worker on $40,000 currently pays tax of $8,070, leaving net income of $31,930. Under ACT's tax proposals, the average worker on $40,000 will pay just $6,200, leaving net income of $33,800. The boost in take-home pay would be due to most of the income being taxed at 15% rather than the current 21%.

Mr Hide also released figures highlighting the potential impact of ACT's tax proposal for a graduate earning $40,000 who added the extra $35.86 to their minimum student loan repayment.

"An extra $35.86 each week towards paying off the average student loan of $14,547 would see the loan paid off in nearly half the time - four years instead of seven years and eleven months. In speeding up the loan repayments the student would save $2,175 in interest."

"A pay-packet boost of $35.86 would make a real difference to the lives of every Kiwi worker earning $40,000, particularly when it comes to clearing personal debt. ACT knows this and that's why we are the champion of a lower, flatter and simpler tax system.

"Workers have stood by and seen any wage gains eaten up by extra taxes and inflation, with Dr Cullen confirming that the average Kiwi household is no better off after five years of Labour. Households are sick and tired of being squeezed," said Mr Hide.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods (is the dollar up or down?) the outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country... More>>




Submissions Summary: The People's Commission On Public Media

This Summary is a preliminary report from the People’s Commission. It brings together views and aspirations of the hundreds of people who made submissions, attended public meetings, filled out the online survey and made speeches to our Panel. More>>

Housing Plans: Protest Over Ihumatao Development

Ihumatao in Mangere, next to the airport in Auckland, holds the archaeological remains of 1000 years of food production; from when Maori first landed in the area, through to early European settler agriculture and right up until today. More>>


Negotiations: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word.. More>>


Contains Highly Colloquial Language: Your F**king Guide To Government Formation

The following message is in no way endorsed by the Electoral Commission. They are f**king done with this election. More>>

NZ Emissions Up 50% 1990-2013: Report Confirms CLimate Change Impacting NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: Inland Revenue Steps Back From Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>





Featured InfoPages

Opening the Election