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21-10-2020, 06:54 PM
#6661
Originally Posted by fungus pudding
.... .and stay as the maximum.
Get over it. Its only money
westerly
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21-10-2020, 07:05 PM
#6662
Originally Posted by dobby41
You aren't pushed into another tax bracket - only the income over the threshold is taxed at the higher rate - your marginal tax rate.
It is a common misconception that all your income is suddenly taxed at a higher rate.
The idea of a 'secondary' tax rate is so that you are less likely to have to pay tax at the end of the tax year.
Your secondary income can push you into another tax bracket, depending upon your primary income rate. I agree that you're entire income isn't taxed at the same rate, and I am disturbed to hear that people actually believe it's taxed at one uniform rate, or perhaps they are flat-tax supporters?
The issue with secondary tax is where income from other sources pushed you into another tax bracket, or potentially where either the primary or secondary income varies causing you to move in and out of brackets and an incorrect amount of tax being deducted. FYI: Ministerial discussion documents on tax reform reference "punitive secondary tax"
Last edited by Zaphod; 21-10-2020 at 07:29 PM.
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21-10-2020, 07:06 PM
#6663
Originally Posted by couta1
Brackets that are that out of date they are rusty, should be 17.5% up to 70k and 33% should start at 100k minimum.
Agreed. We keep hearing that teachers aren't wealthy but many are in the top tax bracket.
These brackets should be pegged against a standard (perhaps inflation) and reviewed annually.
Last edited by Zaphod; 21-10-2020 at 07:47 PM.
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21-10-2020, 07:08 PM
#6664
Originally Posted by fungus pudding
Labour will add 1 more step. A shortsighted 39% on income over $180,000
That's okay, because no one is actually going to pay that anyway. As always, accountants and lawyers will be the winners on this one.
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21-10-2020, 08:05 PM
#6665
Originally Posted by Zaphod
Agreed. We keep hearing that teachers aren't wealthy but many are in the top tax bracket.
These brackets should be pegged against a standard (perhaps inflation) and reviewed annually.
Agree bracket creep, should be altered and regularly reviewed.
At $70K and top tax rate kicks in - a bit out of step these days
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21-10-2020, 08:34 PM
#6666
Originally Posted by Balance
Don't forget the energy subsidy - you get it whether you need it or not.
People can opt out of the Winter Energy Payment - I'm guessing you took up that option.
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21-10-2020, 08:36 PM
#6667
In which case those of us earning less than $35,000 should only pay the bottom rate on our total income.
Originally Posted by Zaphod
Agreed. We keep hearing that teachers aren't wealthy but many are in the top tax bracket.
These brackets should be pegged against a standard (perhaps inflation) and reviewed annually.
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21-10-2020, 08:36 PM
#6668
Originally Posted by jonu
I'll have a crack.
For starters I would remove the punitive secondary tax rates. Also lowering the tax rate for the first 40-50k or removing it altogether to a certain level. Would require serious number crunching. Remember people will still be paying consumption taxes so the overall tax take would not fall much.
Lowering or removing GST on essential food should also be considered (Could be complicated but I think achievable)
I'm sure Balance doesn't need you to do his bidding Junior.
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21-10-2020, 08:37 PM
#6669
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21-10-2020, 08:40 PM
#6670
Originally Posted by Zaphod
That's okay, because no one is actually going to pay that anyway. As always, accountants and lawyers will be the winners on this one.
It's not that easy.
PIE income will become more attractive.
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