Facts matter Josie

Yesterday on The Cauldron, Josie Pagani and I set about each other over taxation.

Her claims were that the “poor” pay more in tax than anyone else…my contention was she was talking rubbish.

Lindsay Mitchell points out who was right and who was wrong.

The topic for discussion was tax cuts. Cam said that half of people already pay no tax (or words to that effect). That tax cuts for them would be ‘smoke and mirrors’.

Josie Pagani mounted an absolute denial saying that low and middle income people pay more tax than wealthier people relative to their income.

Time to remind ourselves that

…households earning under $60,000 a year – which is half of all households – are expected to pay 11 per cent of income tax. “When we take income support payments into account, as a group they will actually pay no net income tax at all,” Mr English says.

But what about GST?

Any low income household spending half of its income on GST-attracting expenditure pays 7.5 percent of their total income.

Hard to mount a case that 7.5% is  higher than the percentage of their income ‘wealthy’ households pay in tax.

Facts not slogans is what matters.

As we can see from the full court press in papers today the media don’t like facts when it comes to tax. They are demanding full details and calling out National for their fiscal restraint.


At least National isn’t doing what Labour is, promising to introduce a tax where they don;t know the detail, that is supposedly going lower house prices, despite it never doing that anywhere in the world, and then applying heroic numbers to it that prove that housing value growth won’t be halted at all.

The media in New Zealand have become fat, dumb and lazy…time for some competition.

Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.