% of total tax payers NZ has is?

4 views

Gordon

Oct 6, 2022, 4:27:15 PM10/6/22
to

Scroll down to the table called How the Tax Burden Falls, now total up the
"% of taxpayers column" This gives the total % of tax payers, right?

I make it 123%.

From the articles text

"The first \$14,000 is taxed at a rate of 10%. Money you earn between \$14,000
and \$48,000 a year is taxed at a rate of 17.5%. Between \$48,000 and \$70,000
you pay 30%. Between \$70,000 and \$180,000 you are taxed 33% and every dollar
you earn over \$180,000 in a year is taxed at 39%. (If you earn \$72,000 a year,
you don’t pay 33% on the whole lot – just the bit over \$70,000.)"

So why the \$10,000 figure and where has the \$48,000 to \$70,000 bracket gone?

Crash

Oct 6, 2022, 6:52:28 PM10/6/22
to
I cannot make any sense of that table. There is no detailed
description of what the column headers actually mean and no cite for
the source.

I found this article in Wikipedia to be for easier to understand, with
a table in it that made sense:

https://en.wikipedia.org/wiki/Taxation_in_New_Zealand

--
Crash McBash

Rich80105

Oct 6, 2022, 8:51:11 PM10/6/22
to
On 6 Oct 2022 20:27:12 GMT, Gordon <Gor...@leaf.net.nz> wrote:

According to
https://taxsummaries.pwc.com/new-zealand/individual/taxes-on-personal-income

the rate on income from 0 to \$14,000 is 10.5%

The report said:
In income tax terms, New Zealand is taxed relatively lightly,
according to OECD data.

If you combined all the tax a worker paid and any social security
contributions they made, then subtracted government assistance like
Working for Families, a single worker in New Zealand on an average
income had a “tax wedge” of 19.4% in 2021. That was second-to-lowest
in the OECD, ahead of only Colombia and Chile.

If it were a person who had a partner and children, they would have a
tax wedge of just 6.5% on an average income. That was still
second-lowest.

Deloitte tax partner Robyn Walker said the absence of social security
contributions from income made New Zealand look lightly taxed.

“If you look at the wedge graphs the actual proportion of tax that is
going on the individual is probably slightly on the higher end.

“I take all those tax wedges with a grain of salt, but it is
indicative in terms of New Zealand being fairly lightly taxed when it
comes to individuals.”

The article then points out that it is the lower paid that have been
most affected by the tax thresholds not beng adjusted since 2010. GST
also hits lower paid people more harshly as they spend a greater
proportion of their income each year.

The article will provide no comfort for National or Luxon who has
promised to reduce the rate for incomes over \$180,000 from 39% to 33%.