42% of you bastards contribute nothing

 

nonewtaxes

The Government says its tax reforms are benefiting lower income households, and it’s got the figures to prove it.

Acting Finance Minister Steven Joyce has released new Treasury data showing the top 10 percent of households will pay 37.2 percent of total income tax this financial year, compared with 35.5 percent in 2007/08.

“This latest data confirms New Zealand’s income tax and support system significantly redistributes incomes to households in need,” he said.

“Higher income households are paying a larger share of income tax than they were in 2008, and lower income households are paying less – the 30 percent of households with the lowest incomes are forecast to pay just 5.4 percent of income tax compared with 6.3 percent in 2007/08.”

Mr Joyce says Treasury estimates that in the current financial year 42 percent of households will pay less in income tax than they receive from welfare benefits, Working for Families, superannuation and accommodation subsidies.

“For the 30 percent of households with the lowest incomes, the $1.7 billion of income tax they are expected to pay will be more than offset by the $10.6b they will receive in income support.”

Two out of every five households are bludging off the rest.  Troughing is an endemic problem.

 

– Newshub

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  • Seriously?

    The 42% was a bit staggering, until you read the fine-print.

    That 42% includes those getting super. It is no surprise that most on super get more from the government than they pay in tax. There are currently around 700,000 that are 65+. That is about 15% of us.

    Leaving them aside, 27% is still quite high but more in the realms of what I wold have guessed.

    • Tom

      Of course it should also be that most on super and many unemployed or sick worked for many years. In my case for 45 years. I guess the author has never had a day since he was borne when he didnt pay tax.

      • Ruahine

        I paid tax for fifty years as a wage and salary earner sometimes at 60% tax. I am grateful for the pension. Worked after 65 paid a lot of tax on the pension.

  • Don O’Brien

    It would be nice to know how much tax is lost due to cash jobs.

    • Nige.

      “this guy”…who? The roofer? It’s the customers who aren’t paying the tax. Not the roofer. If they were made to pay the tax then they may not actually go through with the work.

      • dab

        Not from IRD point of view – if they get wind of it it’s not the customers who will be chased. I know what you’re saying though.

        • Seriously?

          I guess that is because it is the roofer’s obligation to register for (if turnover means he should) GST and to collect and on pay it. It is not the customer’s obligation to check if the contractor ought to be registered or ought to be collecting it.

          But I agree, leaving aside criminality, both know exactly what they are doing.

      • Seriously?

        It’s both. The roofer is not paying income tax (as Don calculates), the customer is not paying GST.

      • Bluemanning

        Thing is, the customer has little backup if the job turns out to be dodgy. No commerce Commision backup or warranty for most cashies.

  • Bob Dazzler

    But what the figures confirm is that the mouthing off Labour losers/ Green lefties is their supporters pay diddly squat or no income tax

  • Day Day

    C’mon National…tax cuts 2017!

    • Nige.

      You can bet that they don’t in the next budget but will be heavily campaigned on before the election.

      “Cuts from national vs 5 new tax’s from labgreens.”

  • cows4me

    It’s depends how you look at it, is it not better to deeply upset 10 percent rather than really upsetting 42percent. “Troughing ?”, no I think not, brought off and paid for more like it.

  • Ghost

    Its been this way for a long time, the age old cry of the left for the rich to “pay their fair share” should mean tax cut to the top income earners and payers. The majority of the population does not know where the money actually comes from and even more clueless as to how it is redistributed.

  • Boondecker

    Anybody see the Nigel Latta ‘The Hard Stuff’ show covering NZ immigration last night? Interesting to hear the stats and discover the whilst Brits and Irish immigrants contribute most to the NZ tax take, followed close behind by Asian immigrants (as Latter himself described them) and Pacific Islanders, it was an eye-opener to find out Kiwi citizens were a long long way back in terms of actual tax value to the government.

    • rangitoto

      Not really. Immigrants are selected for jobs where there is a shortage – usually jobs that are very well paid. The immigrants are often the cream from those countries.

      • Boondecker

        Indeed, I believe that was Latta’s point. There’s less of the “cream” driving taxis these days as they always used to prior to 2002 when the points system was fine-tuned by Labour. To get in to NZ now for work, you pretty much deserve a medal for all the hoops you had to jump through, Latta stated.

        • rangitoto

          We are lucky we can do that unlike the UK (until brexit goes through) where all the no hopers and bludgers of the EU can bowl up no questions asked.

    • Ruahine

      This was quite an interesting program. I was surprised by some of the figures.
      Especially the true number of immigrants given the correct definition of an immigrant as being one who has been granted permanent residencey or citizenship. It appears that our true immigration rate is 45 thousand people a year or one percent of the New Zealand population. It would also appear that approx 30 thousand of them settle in Auckland.

    • Boondecker

      I should clarify, Aussies and North Americans were also in between Asians and Pacific Islanders in those stats Latta mentioned.

    • Nige.

      I just don’t believe him anymore. In the lead up to the last election there was a hit on homeless-nessness followed by a hit on sugar and a hit on violence and another hit and another and another…..

      I used to like the guy but on several occasions he said “the government is a fault”. He’s pink. He’s a socialist.

      • Boondecker

        I would tend to agree he is that. I was interviewed by him at TVNZ studios for this particular programme (along with a number of others) a few months back, but it looks like our contributions ended up on the cutting room floor. Couldn’t have been helping with the narrative, I guess. C’est la vie!

      • Wheninrome

        His head has got rather large with self importance, “he is just so clever”, well he thinks he is.

      • Kapow!

        Totally agree; but in this case the figures weren’t his, I think that they were from Ganesh Nana (probably not much better) but were framed on the basis that the NZ contribution to the economy was across our population – so would include all of the lovelies on WFF and other welfare programmes.
        It was probably a bit misleading in that regard.

  • Quinton Hogg

    In other words people like me who earn umm, well more than Andrew Little, already pay our fair share.

  • Bob Dazzler

    Yes it is for the motivated/self sacrificing to pay for the dummies and slobs.

  • Dog Breath

    A better stat is the top 20% pay 80% of the tax take.

    • Blueburd

      Thats not the what the reds and greens would have us believe

  • Doc45

    I would have hoped that Steven Joyce was ashamed of the figures – not crowing about them. What a travesty. The figures relate to income tax only. Most of the GST, Fuel tax etc is also contributed by high income earners as well. No wonder we are not moving forward as fast as we should.

    • taurangaruru

      Precisely, if anything highlights what a bunch of socialists National have become it is Joyce’s delight at these figures. What a travesty. Kiwis have the choice of voting for socialists, hard left socialists, communists or separatists. What a remarkable legacy we leave for future generations.

  • Hard1

    When was the last time a major drug importer, with known cash and assets, forced to pay GST and Income Tax?

  • DangerMice

    What was the income level for the top 10%?

  • Alfred12

    Good point, I’m in Thailand for the next 2 weeks, not one restaurant so far takes a credit card. It’s all cash. We have dined in both local cheapies and a few upmarket ones. Rented a car yesterday, also cash! Dodgy not much??

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