10pc of taxpayers now pay top rate

Monday 6 September 2004

More workers are being lumped into the ranks of the wealthy on the highest tax rate, as the Government's coffers continue to fill due to a buoyant economy.

By The Landlord

Figures compiled by National show workers are paying on average $2800-a-year more in tax than they were in 1999. Even the Government admits there has been a 38 per cent increase in the amount of tax collected since it took power.

But while National says the figure shows that workers are being penalised too heavily by Labour's decision to raise the top rate of tax on income over $60,000 when it got into power, the Government says it is an indication of a buoyant economy.

Labour increased the top rate of tax by 6c to 39c after the 1999 election saying it would use the money for health and education and promising that only the wealthiest 5 per cent of taxpayers would be affected. That has since risen to 10 per cent with wage hikes.


Read More - Opens in a new window
Commenting is closed

Property News

Major industrial development powers on

It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Commercial

Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.

Mortgages

Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer