Originally Posted by
Aaron
Lets be clear "Bottom Feeders " is Chris Luxon's words, not mine. I find the term offensive but I think it provides an insight to Chris Luxon's way of thinking. Especially in light of the policy he has proposed so far.
I do not want to get too into the ideology regarding encouraging the aspirational and whether those on the bottom are there because they are lazy and/or dumb.
I also don’t want to talk about tax and “fairness” as some would argue any tax is unfair.
But as a simple practical but extreme example I would ask what seems more reasonable?
Take a single pensioner they get $30,090.84 national superannuation p.a. Lets say for whatever reason he did not put any money aside for retirement and is trying to live on NZ Super as I understand some people are in that boat for whatever reason and compare him to my good friend Adrian Orr on $800,000.00 at the RBNZ.
Is it unreasonable to ask Adrian to pay $735.96 extra in tax each week ($38,269.92 p.a) cutting his weekly budget to only just over $10k or perhaps you are like David Seymour and see this as a huge imposition on poor old Adrian so why not cut just $3.46 off 212 pensioners national superannuation (Adrian’s tax savings (254,920-216,650)/$180 extra tax per pensioner) to reduce the tax burden on poor old Adrian.
The pensioner still has $492.79 to splash around on rates or rent, food, transport, clothing, grandkids birthday presents etc. I might give boomers a hard time on here but only the wealthy ones, as a nation I still think first and foremost you look after yourself, work hard, save, pay your taxes and don't put your hand out like a bludger, but I would hope we could still have some compassion for the less well off.
Don’t forget that currently Adrian still only pays 10.5% on his first $14,000 same as the pensioner.
Also don’t forget John Key hit the bottom feeders with a GST increase to 15%. This is a regressive tax that hits the poorer harder (Despite Fungus Pudding disagreeing with this statement it is true). Also some commentators have suggested that inflation is also a regressive tax so over the last little while both top and bottom have been taking some hits.
I would agree with David Seymour that we have to look at spending as well as taxing. Just taxing without regard to how it is being spent is also stupid. Surprising that Labour are not touting their achievements while in power especially as they have had more money than most to work with thanks to Adrian buying NZ govt bonds.
I have put my calculations at the bottom as I cannot seem to format them. The first two columns are tax under the current system and the second two under ACTs policy but it is hard to tell. You can always do your own calculations.
Current ACT
Pensioner Adrian Pensioner Adrian
Gross 30,090.84 800,000.00 30,090.84 800,000.00
Tax 4,285.75 254,920.00 4,465.90 216,650.00
Net 25,805.09 545,080.00 25,624.94 583,350.00
Net Weekly 496.25 10,482.31 492.79 11,218.27
Difference in budget -3.46 735.96