Poor Little Britain

Imagine a 40 per cent marginal tax rate

In the hope of raising £3.3billion by 2018, Mr Osborne announced he would limit the size of the increase in the personal tax thresholds.

Currently, everyone can earn £8,105 without paying a penny of tax. For the next £34,370 they earn they pay income tax of 20 per cent.

This means that once they have a salary of £42,475, they would pay 40 per cent income tax for every additional pound they earn.

Quite why you would stay in England paying for bludging ferals to breed in their Council houses to get hit with a 40 per cent marginal rate at around NZ$80k I do not and never will, understand.

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  • Pissedoffyouth

    They could raise that money by dropping all benefits – that’ll fuck ‘em.

    Id don’t get that train of thought “oh we are out of money from spending on idiots shit instead of reducing spending lets tax more”

    • In Vino Veritas

      Not far short of the mark POY. That’ll be Labour’s plan here as well. Tax the few that earn more, to get more people on some sort of benefit or government subsidy. Equal sharing of the misery.

      • Sir Cullen’s Sidekick

        Good to see rich pricks are coming to realise the plan of Sheep-Muesli combo. Get ready to part with your dear money Veritas bro…the day of social justice is fast approaching. If you have two cars, one car will be mine soon.

        • In Vino Veritas

          Hah ha ha SCS! One thing that high tax jurisdictions find is that capital and those with it are highly mobile. My help will just have to dust down my BVI place.

  • nelson muntz

    Plus VAT

  • Phar Lap

    So what else is new.When Sullen Cullen roamed the nation .Rich pricks paid 33 cents at 39K TO 60K, then 39 cents thereafter.

    • Andy

      I do remember the glorious days of labour in the UK under Wilson and Callaghan when the top tax rate on investment income was 98%

      That’s when the “rich pricks” all buggered off to Switzerland

      • ConwayCaptain

        Andy
        People were leaving the UK in DROVES when Wilson and co were in power. The TUC had an open door arrangement with Wilson et al and they just said what they wanted and Wilson delkivered.
        The shipyards were in a terrible way with something like 6 different trades to install a door stopper. The Car Manufacturing was terrible and as for the rest well!!! We got the Boilermakers and other TUC scum here and they did their worst with Marsden Point, NZ Steel, Mangere Bridge, BNZ Building in Welly etc.
        We might get the same if Wussel et al are let loose.

    • Sir Cullen’s Sidekick

      Now rich pricks will pay 45 cents for income over 60K under Finance Minister Norman

      • Phar Lap

        Under the Aussie wetback Norman.The new declared “Rich Pricks” will kick in at $30,000 DOLLARS, then are you saying 45 CENTS ,for one or two people up to 60K,or over.Will both mum and dads,earners be collectively taxed,to pay for all the utopian wish list,put out by the RED”/greens”.

        • greatscott

          Wait, so Russell is printing that much money that is now called fifty dollar dollars? Soon, Euro Euro’s and Pound Pounds too?

  • Apolonia

    Those earning less than 8,105 don’t pay tax but they do pay National Insurance.

    • Slijmbal

      Worked in NL and had a top tax rate in the 60s but because of paying no tax on 1st X Guilders, various tax breaks and a gradated tax regime found I payed a smaller flat range percentage tax than in NZ when I emigrated here – and I earned less in NZ . The real figure is the total %age of your income disappearing in tax. Admittedly I was having to get serious pay rises to see my actual income increase reasonably.

  • http://www.whaleoil.co.nz/ Petal

    Never afraid to look like noob, I had to look up the meaning of Marginal Tax Rate. Here it is for the lazy and bewildered: http://en.wikipedia.org/wiki/Tax_rate#Marginal

    It’s the highest rate of tax you pay on the last dollar you earn, although your actual (average / overall) tax rate will be lower if there are progressive taxable income bands (ie, not a flat tax).

    I think I’ll take the rest of the day off now.

    • http://www.whaleoil.co.nz/ Petal

      Hmmm, Table of top tax rates throughout Europe.

      http://en.wikipedia.org/wiki/Tax_rates_of_Europe

    • phronesis

      Well your honesty is refreshing but don’t you think knowing basic things like how taxation works is relevant to voting in a general election? I know people who don’t even know how much tax they are paying. If you ask them how much they make they tell you how much they get in the hand. How can people vote when they don’t understand something as fundamental as Tax policy? Do people actually think we have elections so we can choose a party that represents our position on Gay marriage?

      • http://www.whaleoil.co.nz/ Petal

        I knew it as the “top tax rate” or “top tier”. It’s just a phrase I looked up. But good on you for knowing it already. Personally I am completely disinterested in money in the same sense I am disinterested in oxygen – it only captures my attention when I don’t have enough of it.

        • phronesis

          A better definition is “The amount of tax paid on an additional dollar of income.” This is important because it has a major effect on how productive people choose to be. Things like WFF and other benefits can result in truly absurd marginal tax rates. Of course the impact on a persons actions depend on them understanding the concept. Beneficiaries work out pretty quickly that earning money doesn’t get them much in the hand as their benefit is cut. They thus have a very high marginal tax rate and little financial incentive to work more.

          • http://www.whaleoil.co.nz/ Petal

            I resent that sort of thinking. Whenever I hear people complaining about paying 33 cents in the dollar or not bothering to do X because then they’ll trip “into “33 cents in the dollar, their thinking is completely fucked up. 1) you’re doing well enough to trip into the next tax bracket – good on you 2) if you can’t be arsed to earn $10 to keep $6.67 where before you earned $10 to keen $7.20, you need to have a long hard talk with yourself.

      • http://unsolicitedious.wordpress.com/ Unsolicitedious

        “but don’t you think knowing basic things like how taxation works is relevant to voting in a general election”

        I agree, but if that was the standard then very few people would be eligible to vote. Most NZers are financially and tax illiterate.

        After all, this is the country that ties up IRD call centres then blames them for making them wait for 20minutes…just so the staff can tell them firstly, open that letter from “you people” and then advise, yes you do owe that tax because you once again, failed to give the right tax code to your employer. Or whatever other BS question they come up with.

        Unlike terms like Residual Income Tax, Marginal Tax Rate is prob more basic knowledge for those who work closely with taxes/accounts as opposed to the average taxpayer..

        “Do people actually think we have elections so we can choose a party that represents our position on Gay marriage?”

        Probably. I dont think most people really understand the basic fundamental issues that govern our domestic & foreign policy and even with social issues such as the marriage equality debate, most people dont really take the time to understand what it means in terms of historical context, human rights etc. I think many people just agree because it’s not PC to disagree.

  • Andy

    it’s worse than that. According to a recent OECD report, the UK comes out top in the world at an effective tax rate of 73 percent, by the time they have factored in VAT, national insurance, etc

    http://www.thesun.co.uk/sol/homepage/news/politics/4676943/British-families-pay-top-tax-in-the-world.html

    Note, that in the chart NZ comes out slightly worse off than Norway, which is perhaps surprising.

    • phronesis

      Not really, Norway exploits its considerable natural resources.

      • Andy

        it does that and has bucketloads of money as a result. I was really referring to the Scandinavian socialist model. I was under the impression that their tax rates were very high compared to NZ,

        • phronesis

          The dirty little secret of the much vaunted Scandinavian socialist model is that it is paid for by resource exploitation and debt and is completely unsustainable.

          • Andy

            I thought they had several hundreds of billions in funds, via taxing their Oil wealth. If this is “unsustainable” then so be it. It has one of the highest standards of living in Europe

          • phronesis

            But you ” was really referring to the Scandinavian socialist model.” Of which Sweden is by far the largest example and they have a higher debt per capita than us. Although their debt is decreasing (due mostly to their preferential market access) they face major demographic problems in the near future which will test the socialist model beyond its limits.

          • Andy

            OK, sorry I was really just referring to Norway. Sweden is a separate issue. I was under the illusion that Norwegians were taxed very heavily.

            Anyway, at the end of the day it comes to after tax spending power. Australia has higher taxes than NZ but most people are better off earning there than in NZ. Hence the exodus

          • phronesis

            No joke, I leave for Perth next week. Don’t know when I’ll be back again. Paying 45% income tax.

          • greatscott

            Yep, gotta pay for the Somalian’s to get rid of Christmas and breed like rats in slums, just like they have in England

          • Mostly_Harmless

            That’s wacist hatespeak!

          • Lion_ess

            Speaking of Mount Roskill, can someone tell me from whether New Zealand’s largest Somalian community is NZ Government funded?

  • cows4me

    Flat tax is the only way to go. Why should someone who strives to do well in life be penalised because they are successful. Of course a flat tax would work, it just makes most politicians irrelevant and politics of class and envy are confined to the dustbin. A flat tax in NZ would be a magnet to those with serious wealth and those hoping to find a better life.

    • MarcWills

      Except we would get people like, say, Mr .com and whoever that guy being investigated by the AG for immigration irregularities is, flocking here in their thousands, and the rest of us would be smeared by their reputations in no time at all.

    • phronesis

      Flat tax with a cap.

  • tarkwin

    Is Russell Norman their finance minister?

    • Sir Cullen’s Sidekick

      He will be in 2014 bro. Get ready for a 45% rich prick tax

      • greatscott

        Does it apply to Labour pollies?

        • Sir Cullen’s Sidekick

          Absolutely Mr greatscott. None of the Labour pollies are worried about “paying a little more” to restore social justice (as the great dictator aunty Helen once told us)

          • tarkwin

            I can’t take it any more! I’m off to the pub to drink heavily before they put the tax up! See you all next week.

          • Hazards001

            Well of course they don’t mind. The no talent troughers are so stunned to be able to get paid the amounts they get that even if they were taxed at 94% they would still be taking home double what their skills are worth on the open market!

  • ConwayCaptain

    Norway put all theor oil revenues into their Sovereign Fund and are one of the wealthiest countries in the world.

  • Sir Cullen’s Sidekick

    This is exactly what is going to happen in New Zealand when the Sheep-Muesli communist government will be in place in 2014. They will tax you to death. So be prepared to write a column “Poor Little New Zealand”. What else will come out of the communists who want to extend WWF to beneficiaries?

    • greatscott

      In work tax credit for people out of work and a sickness benefit for people who are well, gotta go Green this election

      • Sir Cullen’s Sidekick

        I will get you a green grant to grow “green stuff” in your backyard. The funding will be provided by Ministry of Green Stuff led by Greenham sorry Graham.

  • Mr_Blobby

    Britain is very lucky that they are not part of the Euro currency then they would be completely fucked.

    As for here the slide is inevitable. The 45% relying on some sort of Government assistance will vote in there own self interest. They should declare there conflict of interest and not vote or be banned from voting, but they won’t and will not. The 1% are already no longer TAX resident in NZ. As the % of TAX per GDP increases more people in the middle will opt to join those requiring or wanting Government assistance others will just leave the country. At some point the Government will not be able to TAX or BORROW enough to fund our life style and the whole system will crash under its own, Ponzie scheme, weight.

    Personally you should be looking to be TAX neutral, limit your income so that you put no more into the system than you get back out in benefits. Enjoy life and sit back and watch the train wreck.

  • http://www.facebook.com/profile.php?id=706456651 Nigel Sherrie Fairweather-Hunt

    and pay for ferrel mps like here.

  • http://unsolicitedious.wordpress.com/ Unsolicitedious

    Typical commies. As Roger Kerr once said, there is never enough wealthy people for the ‘tax the rich’ type policies to make any real difference to government revenue. Further all it does is encourage people to move towards tax avoidance/change their business structure and create resentment towards those doing SFA yet gaining the most benefits….Kerr said it more eloquently:

    “A ‘tax the rich’ policy also polarises a democratic system. It leads to an increasing disconnect between the benefits government provides and the cost of those benefits to most citizens. A voting majority increasingly demands more government benefits for which they want others to pay….cuts to high tax rates encourage economic growth and reduce tax avoidance, they may actually produce more government revenue”

    What we need is a flat or proportional rate system & scrap this whole Robin Hood gone psycho mentality once & for all; to me it was criminal beyond comprehension that those thieving Liebour wankers taxed me fresh out of uni 33% on $38k then 39% on more than $60k for 9 whole years…..all the while smarmy Cullen (silent N & T) boasted of his fantastic surpluses….to hand out to lazy assholes….while declaring any tax cuts would mean “jam now but crumbs later”.

    The only thing that got me even more incensed that this was when those same lazy bludging assholes declared the tax cuts proposed by NatACt were “tax cuts for the rich” and that we “didnt deserve them”….well I have news for them. You dont get to a healthy wage by sitting on your arse or working a mere 40 hours a week.

    Like anything in life there is always a payoff. If you want the big dollars you have to put in the big hours. And if you want the big tax cuts, you have to pay a shit load of tax to begin with; people always complain about companies etc paying very little. Well those highflyers are registered for GST and pay a heap in GST each time they file. GST revenue, company tax along with 13-17% of individual income tax, is the back bone of this countries core revenue. And raising tax rates just gives that revenue the excuse to bugger off to some place that shows a little more respect.

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