Thursday, October 09, 2008

Will Helen Clark laugh at National's tax cuts?

Helen Clark wants people to be wary and laugh at Nationals tax cuts.
Even if it was just at $18 a week more than Labour's package, she said people should still be wary.

But it's Labour we're laughing at. National's tax cuts are $18 a week for those on the average wage. Helen Clark was close to the mark. But is she laughing now?

National has announced its tax cut programme and changes to KiwiSaver are going to fund them. National wants to cut the tax credit to employers, and reduce employees' and employers' minimum contribution to 2 per cent of gross income.In his speech notes Key said the bulk of the cut would come on April 1 2009, meaning a worker on the average wage of $48,000 would be better off by an additional $18 a week above Labour's cuts from that date.

But as you can see here, low paid workers won't get much. That may give Clark something to laugh at(stolen from No Right Turn - bigger chart here for the squinters.) And because I really don't have time to analyse who provides the best deal, so go to No Right Turn. In summary if you`re poor, Labour provides the best deal if you're rich National does - and that's why National's package is bigger. Not only do the rich get more, they get it earlier.

I don't like the package at all.

Heres the calculations from Kiwiblog

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