Increasing the top tax rate from 33c to 36c is not an "envy tax", as John Key claims. It is a tiny impost on the top 2 per cent of taxpayers. Someone earning $160,000 a year will pay an extra $6 a week in tax. They simply won't notice it. It is similarly daft for Steven Joyce to claim that this will somehow have an effect on the brain drain. It will have no effect whatever.$6 a week looks immediately suspect. Why would Labour bother?
So I did the numbers using income tax rates from IRD:
First $14,000 at 10.5 cents = $1,470
Next $34,000 at 17.5 cents = $5,950
Next $22,000 at 30 cents = $6,600
Remaining 90,000 at 33 cents = $29,700
Total tax paid = $43,720
Remaining 90,000 at 36 cents = $32,400
Total tax paid = $46,420
Difference = $2,700 or $52 a week.
What did the writer do?
Forget to add a 0 on the tax taken at $90,000?
What a numpty.
Update. OK. I'm the numpty who shouldn't have assumed the thresholds were staying the same.