“.. The Government is putting the finishing touches to its package of tax cuts and is now confident that low and middle income earners will have more money in their pockets – even after paying a higher GST.
The Sunday Star-Times understands the government has settled on lowering the tax rate for those earning between $14,000 to $48,000 –
- which represents the bulk of wage earners – from 21% to 19%.
The May budget is also expected to lower the tax rate for those earning up to $14,000 from 12.5% to 10%.
The Star-Times also understands the government will, in one hit, lower the top rate for those earning more than $70,000 from 38% to 33%, rather than doing it gradually.
If the changes are implemented, someone on the average wage of about $48,000 will be about $5-$10 a week better off, according to New Zealand Institute of Economic Research figures to be published this week.
Those earning more than $70,000 would be about $20 a week better off (see table).
The government has signalled that GST will rise from 12.5% to 15%, raising an estimated $2 billion in revenue that would be used to pay for the tax cuts.
Lifting the tax to 15% will add $21.25 to the average weekly household bill..”
go to source/story>>Tax cuts – what you’ll get – national | Stuff.co.nz
