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

Scoop Editor "Ask me anything" : Scoop's 'Invisible Paywall'

Operation Chrysalis: The Final Countdown - Thanks & There's Still Time To Pledge

Phew! We are now counting down the hours to the end of this crowd-funding campaign at 11pm on Sunday. Thankyou to all those Scoop readers and supporters who have pledged already. You have been awesome. But this is not over yet. More>>

 
 

PARLIAMENT TODAY:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news