Currently the top tax rate in NZ is 33 cents in the dollar. We have a GST which is 15% on all transactions, so you are basically paying 48% of the money you spend in tax.
The income tax rates now have a new higher rate for the rich pricks. Note that is NZ dollars: this is about 90K euro or 120K US.
The Inland Revenue Department is warning people on incomes over $180,000 not to try to avoid the new 39% tax rate.
“Inland Revenue will be keeping a close watch for any activity by such people that looks like its primary aim is to avoid the 39%. If that’s how it looks to us then we’ll take the necessary action,” Inland Revenue customer segment leader Tony Morris says.
The 39% rate kicks-in from April 1.
I expect that the senior doctors and civil servants who are the people who will be hit by this will demand a pay increase well over six percent.
This will also make saving for retirement problematic. The real rate of inflation is better measured by the price of the big mac than the official inflation rate, which includes a whole number of consumer goods.
Such as laptops, TVs, cars etc. You can’t eat those. What matters is food inflation, rent inflation, and fee inflation. You can’t avoid them. And they are going up by over 5% a year.