Archive for the ‘Micheal Cullen’ category

The money go-around

May 18, 2007

Kiwiblog has an excellent post showing that the overall effect of the budget on bussiness. It is well worth reading and shows that the compulsory bussiness payments for kiwisaver ( a de facto payroll tax) represents the equivalent of a 5% increase in the company tax rate. It shows that bussiness is actually worse of under this budget than before this budget.

Dr Greedy Cullen

May 17, 2007

Since Labour came to power in 1999, look at all the increases in taxes we have had.  

  1. New top income tax threshold of 39% for the super rich 14% of people who earn more than $60 000 per year.
  2. Fringe benefit tax increased from 49% to 64%
  3. Trust income tax increased from 19.5% to 33%
  4. Resident witholding tax- deducton rate on intrest  increased to 39%, from 33% or 19.5%.
  5. Tobbaco tax, price of packet of cigarettes up $1.12 including GST.
  6. Petrol tax up by 5.29 cents per litre including GST.
  7. New $18 import tax introduced on goods with GST liability of more than $50.
  8. Petrol ACC levy increased by 2.78 cents per litre.
  9. Increase in alcohol tax, from $21 per litre to $38 per litre for all alcoholic breverages with more than 14% alcohol content.
  10. A massive 74% increase in the ACC levies for farmers.
  11. Motorbike ACC levy increased by 57%.
  12. Birth, death and marriage certificate fees increased by 43%.
  13. Driver licence renewal fee increased by $14.80 to $44.30.
  14. Fire service levy increased by 17.7%.
  15. Fishing licence fee increased by 10%.
  16. Cattle slaughtering levy increased by 50%.
  17. Export education levy set up, involving $185, plus 0.45% of tuition fees.
  18. New fund withdrawl tax, of 5% for withdraws from employer funded superanuation schemes for people earning mre than $60 000.
  19. New Border security fees introduced for exporters and importers, collecting $20 000 0000 each year in revenue for the government.
  20. Car ownership rego increased by 14%.
  21. Levy on non-petrol fueled vechiles increased from $176.10 to $221.31.
  22. Petrol tax increased again by 5.625 cents per litre including GST, with equivalent increase in road user charges for diesel vechiles.
  23. New 1 cent per unit of electricity tax.
  24. Petrol tax increased for the third time by 4.5 cents per litre.
  25. A big 41% increase in road user charges for diesel vechiles.
  26. A new $13 000 per hectre deforestation tax.
  27. Coming soon: a de fact 1.4% payroll tax that goes into employees kiwisaver acounts.
  28. Coming soon: a 11.25 cent per litre increase in petrol tax for motorists in the Auckland and Welington regions, including GST. This comes on top of the 18.22 cents per litre increase in petrol taxes mentioned above that we’ve had since labour was elected.

I’m only 20 years old but I can remeber Labour promising that only 5% of people would pay more tax when elected in 1999. Instead almost 100% of new zealanders are paying increased tax in one of the ways mentioned above. This info comes from a comment by “Simo” on kiwiblog saying “and we wonder why we can’t save”.

Budget unveiled

May 17, 2007

Dr Greedy Cullen has unveiled his eighth budget. There are no big suprises. It involves a 10 cent increase in petrol tax for Auckland and Wellington, which will be used to pay for the eletrification of Auckland’s rail network and new roads. Also included is the cancellation of the “chewing gum” tax cuts anounced in 2005. This means that by 2008 14% of taxpayers will be paying tax at the top 39% tax rate, much higher than the 5% Labour promised in 1999. This is a promise they have failed to deliver on. On the positive side there is a cut in the company tax rate from 33% to 30%. However much of the money bussiness save from this will go to compulsory payments into their employees kiwisaver accounts. David Farrar has a good pst with tables on the changes to Kiwisaver, which involve the employee contributing 45 of his/her salary into kiwisaver, and for every dollar he/she puts in to his/her kiwisaver account, the government also puts 65 cents in. The employer is required by law to put an amount of money equaling 1.4% of their employees salary into their Kiwisaver accounts (once tax rebates are taken into account), effectively a 1.4% payroll tax. Also included is the abolition of the cap on chrity tax rebates, as advocated for by John Key earlier in the year. Overall this budget is a mixture of good and bad, but the bad outweighs the good.