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Government delivers on its tax cut promises
Hon Bill English Minister of Finance
11 December
2008
Media Statement
Government delivers on its tax cut promises
The passage of the Taxation (Urgent Measures and Annual Rates) Bill this morning shows that New Zealanders now have a government that delivers on its tax cut promises, Finance Minister Bill English said today.
The legislation includes personal income tax cuts and threshold changes, as well as a new independent earner tax credit for low and middle income earners. "It took nine years before Labour relented to cut personal taxes at their last opportunity. It has taken the National-led government a week," Mr English said.
The new legislation is part
of the government's plan to help cushion the impact of
recession and increase New Zealand's economic productivity
and competitiveness. "The tax cuts we have delivered will
stimulate the economy in the short term by putting cash in
people's pockets, and in the longer term by encouraging
people to invest in their own skills to earn and keep more
money. "The passage of the Bill is an important step towards
our goal to deliver a personal tax system that rewards
effort and provides better incentives to get ahead." The
table below shows how much shows how much savings the tax
cuts deliver over the three-year programme. These savings
are in addition to the 1 October 2008 tax cuts.
Annual taxable income
Cumulative weekly savings
TOTAL ANNUAL SAVINGS FROM 1 APRIL 2011
1-Apr-09
1-Apr-10
1-Apr-11
Tax cut
with IETC
Tax cut
with IETC
Tax cut
with IETC
Tax cut
with IETC
$ 15,000
0.00
0.00
0.00
0.00
0.19
0.19
10
$ 20,000
0.00
0.00
0.00
0.00
1.15
1.15
60
$ 25,000
0.00
10.00
0.00
15.00
2.12
17.12
110
890
$ 30,000
0.00
10.00
0.00
15.00
3.08
18.08
160
940
$ 35,000
0.00
10.00
0.00
15.00
4.04
19.04
210
990
$ 40,000
0.00
10.00
0.00
15.00
5.00
20.00
260
1040
$ 45,000
11.54
19.04
11.54
24.04
17.50
30.00
910
1560
$ 50,000
18.46
18.46
23.08
23.08
30.00
30.00
1560
$ 55,000
18.46
18.46
23.08
23.08
30.00
30.00
1560
$ 60,000
18.46
18.46
23.08
23.08
30.00
30.00
1560
$ 65,000
18.46
18.46
23.08
23.08
30.00
30.00
1560
$ 70,000
18.46
18.46
23.08
23.08
30.00
30.00
1560
$ 75,000
19.42
19.42
25.00
25.00
31.92
31.92
1660
$ 80,000
20.38
20.38
26.92
26.92
33.85
33.85
1760
$ 85,000
21.35
21.35
28.85
28.85
35.77
35.77
1860
$ 90,000
22.31
22.31
30.77
30.77
37.69
37.69
1960
$ 95,000
23.27
23.27
32.69
32.69
39.62
39.62
2060
$ 100,000
24.23
24.23
34.62
34.62
41.54
41.54
2160
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