Calculated at the time of Key’s ‘leadership’ (said with tongue in cheek). The same would doubtless still apply for the current PM. Time for change. Bryan Bruce in his last doco recalled a time when Parliamentarians earned the same wage as a teacher. The higher salary (that being a vast understatement) has not brought greater accountability or better service from these public servants. We should return to the previous regime. And put them on a fair tax rate. This article from 2014 is from the dailyblog.co.nz
How much tax does John Key pay compared to a minimum wage worker??
Yesterday I did some calculations to find out what tax John Key pays compared to a worker on the minimum wage.
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.
The National government and its attack bloggers refer to the working poor as scum, bludgers and ferals but it’s clear the real problem is with the top 1% of income earners who get all the benefits of taxpayer funded facilities and services but don’t pull their weight paying for them.
Cleaners, fast-food workers, hospitality workers and security guards are all heavily subsidising the lifestyles of the superrich.
These figures show we need an overhaul of our tax system so the Prime Minister and his rich-list colleagues pay their fair share.