Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Tax Cut Promise to be paid for by Effective Tax Increase

Tax Cut Promise to be paid for by Effective Tax Increase for 720,000 New Zealanders


22 May 2014

New Zealand Union of Students’ Associations


John Key and Bill English appear to want to go into the next election promising a tax cut – which will inevitably go to the highest earning New Zealanders. However, the New Zealand Union of Students’ Associations (NZUSA) points out that it will be paid for through an effective tax increase – a compulsorily collected reduction in take-home pay – on the 720,000 former students who have a student loan.

“The 2014 budget froze the student loan repayment threshold at $19,084, below the minimum wage and well below the Australian student loan repayment threshold of $53,345. In real terms, this means as wages increase for graduates, low income earners will not be able to put food on the table or pay spiralling housing costs”, said NZUSA President Daniel Haines.

“On top of this, in 2012 the repayment rate increased from 10 cents in the dollar to 12 cents. A graduate earning the average wage of $54,700 will be paying an effective marginal tax rate of 42 per cent. It is mean-spirited that English has trumpeted that average wages will increase by $7,500 over the next four years.

“The cumulative effect of increasing the repayment rate whilst freezing the threshold means of the $7,500 increased wages, $5,000 will be clawed back. By reducing our investment into education and health this Government paid for the surplus. Now graduates have to pay for their proposed tax cuts too, this simply isn’t fair.

“Not that he or his generation need to worry, for them tertiary education was free. Why are those who benefited from the opportunity to access free education and cheap housing removing that right from others?”, said Haines.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Last Sitting Day Of Parliament: Slave Ships Bill To Pass

The House resumed at 9am and MPs agreed to add the third reading of the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill to this morning’s business.

The bill requires all foreign owned fishing vessels to fly under a New Zealand flag from May 2016 and obey all New Zealand laws. This includes labour laws...

Last night Opposition MPs accused the Maori Party of blocking the passage of this bill into law in this Parliament, no members of the Maori Party were in the House to answer the accusations though they denied this in a press release. More>>

 

Parliament Today:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Greens: Plan To Protect Our Maui’s Dolphins

1. Protect Maui’s from being killed in the sanctuary set up to protect them... 2. Extend fishing protections to the entire Maui’s range... 3. Help protect the livelihoods of affected fishers by supporting them to adopt dolphin-safe fishing methods. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news