“The Prime Minister earns $428,000 from his PM’s salary along with this [last] year’s  $5,000,000 increase in his wealth (according to NBR’s rich list) which gives him a total income of $5,428,000. On this total income he pays just $132,160 in income tax and approximately $21,400 in GST giving a total tax of $153,560 or 2.8% of income” The Daily Blog
There’s a tale that’s always been out there saying John Key gives all of his salary away … it would seem. I’ve since heard he only donates some to charity … not all, and he won’t say how much or to whom. I certainly heard early in the piece that he donated all … I’m now very skeptical about that. Here’s what one blogger’s research turned up ….
“After talking to a person from his office here is the best info I can get. His pay goes into his bank account. He does give money to charity but doesn’t keep detailed records of how much. He doesn’t want to say what charities or provide a ballpark figure of what proportion of his pm pay he gives.” The blogger concludes, probably quite correctly, it is an “Urban myth!!!”
Anyway, all that aside, there being no proof and it’s unlikely we’ll ever see any, here is an interesting article about the tax rate he pays. I think it’s very unfair quite frankly and I’m sure most will. Okay most will justify an extra large salary to go with the position of PM, however, who can possibly justify the piddly tax rate he or any other politician pays? While we on the lower income scale are urged to tighten our belts, on the other hand, the wealthy spend extravagantly. A mere 10% of New Zealand owns 52% of the nation’s wealth.
Take a look at this President, Jose Mujica of Uruguay. He drives a Volkswagen and lives very frugally. He really does give away 90% of his income and leaves himself with the equivalent of an average Uruguayan wage. Our politicians could definitely take a leaf out of his book. Seeing these salaries and the pittance in tax they pay, small wonder we are so in debt as a country.
And please don’t blame the beneficiaries, I recall an era when there was no unemployment … everybody had a job and everybody wanted to work. The fault lies folks with our previous governments who borrowed us into this big black hole we’re in. Politicians have a nifty knack of shifting the blame onto the folks they pledge to serve. Well the folks they are supposed to be serving.
“The radical restructuring programme of the 1984–1990 Labour government, followed by National’s Employment Contracts Act 1991 led to a steep fall in union membership and a rapid rise in inequality. The top 1% more than doubled their portion of available income by 1998, reaching a peak of 13.8 percent in 1999″. Bryan Bruce
I have at times in my life worked two jobs, when on a low income, only to be taxed at 33 cents in the dollar for the second. This makes me even more livid seeing this. You’ll see here Key pays a mere 2.8% compared to the ‘peasants’ who are taxed an outrageous 28%!! Left with barely enough to live on. What do you think?
How much tax does John Key pay compared to a minimum wage worker??
The Daily Blog
By John Minto
“Yesterday I did some calculations to find out what tax John Key pays compared to a worker on the minimum wage. And I put out this media release for the Mana Movement:
MANA Movement Economic Justice spokesperson John Minto is calling for a radical overhaul of New Zealand’s taxation system with calculations showing that a minimum wage worker pays a ten times higher tax rate than the Prime Minister.
Minimum wage worker 28% tax
Prime Minister 2.8% tax
The minimum wage worker on 40 hours per week earns $29,640 and pays $4,207 in income tax and $4,149.60 in GST giving a total tax of $8,356.60 or 28% of income.
On the other hand the Prime Minister earns $428,000 from his PM’s salary along with this year’s $5,000,000 increase in his wealth (according to NBR’s rich list) which gives him a total income of $5,428,000. On this total income he pays just $132,160 in income tax and approximately $21,400 in GST giving a total tax of $153,560 or 2.8% of income.
This is a national embarrassment. Those least able to pay are under a heavy tax burden while the super-rich pay peanuts……”