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How much tax does PM pay compared to a minimum wage worker?

How much tax does John Key pay compared to a minimum wage worker??


John Minto, MANA Movement Economic Justice Spokesperson
Tuesday 26 August, 2014


MANA Movement Economic Justice spokesperson John Minto is calling for a radical overhaul of New Zealand’s taxation system with calculations showing that a minimum wage worker pays a ten times higher tax rate than the Prime Minister.

o Minimum wage worker 28% tax

o Prime Minister 2.8% tax

“The minimum wage worker on 40 hours per week earns $29,640 and pays $4,207 in income tax and $4,149.60 in GST giving a total tax of $8,356.60 or 28%of income”, said John Minto, MANA Movement Economic Justice Spokesperson.

“On the other hand the Prime Minister earns $428,000 from his PM’s salary along with this year’s $5,000,000 increase in his wealth (according to NBR’s rich list) which gives him a total income of $5,428,000. On this total income he pays just $132,160 in income tax and approximately $21,400 in GST giving a total tax of $153,560 or 2.8% of income”, said Minto.

“This is a national embarrassment. Those least able to pay are under a heavy tax burden while the super-rich pay peanuts”.

“The National government and its attack bloggers refer to the working poor as scum, bludgers and ferals but it’s clear the real problem is with the top 1% of income earners who get all the benefits of taxpayer funded facilities and services but don’t pull their weight paying for them”.

“Cleaners, fast-food workers, hospitality workers and security guards are all heavily subsidising the lifestyles of the superrich”.

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These figures show we need an overhaul of our tax system so the Prime Minister and his rich-list colleagues pay their fair share.

MANA Movement policy addresses this by -
A robust capital gains tax paid at the same rate as the person’s income tax
A financial transactions tax on currency speculation to replace GST (Note: GST hits families on low incomes the hardest because the poorest 10% of income earners pay 14% of their income on GST while the wealthiest 10% pay less than 5% of their income on GST)
Higher tax on higher incomes
An inheritance tax on estates over $500,000. (National abolished inheritance tax in the early 1990s allowing wealthy family dynasties to flourish at the expense of everyone else.

ENDS

© Scoop Media

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