Tag Archives: Minimum wage

More smoke and mirrors from the halls of Parliament … Welfare benefits are now termed “addictive” … the new rationale for quietly dismantling NZ’s welfare state (Pt 1)

The latest spin from the powers that be, all about seeking work & not being addicted to welfare. Indeed welfare benefits carry a serious health warning reports the NZ Herald!

Doctors have been told that putting patients on welfare is akin to putting them on “an addictive debilitating drug … not dissimilar to smoking” (NZ Herald 16/7/2016)

What planet  are these guys are living on!? A corporation parading as a government that fails to concede we have a homelessness crisis also wants to blame unemployed for not working when basically there are no jobs (with nary a mention of course of the tax dodging multi national corporations)! They will cite figures about unemployment being down but the figures proffered are dodgy at the very least.

Classic case of smoke and mirrors basically where the victim is blamed for the crime. Shifting the focus off the facts … high unemployment (remember pre neo-liberal policies we had FULL employment & guess who borrowed us into debt?) their own mismanagement of the public funds ($200 mill Kiwisaver funds lost to a Portuguese bank plus $6+ mill spent on an unnecessary Hawaiian mansion) and a preference for pleasing the corporates … and onto blaming folks for having neither work nor in many cases a home.

NZ has a serious housing crisis with thousands homeless, many sleeping in cars and garages

As we hear more frequently about suicides and/or attempted suicides (highest since records kept) as we see increasing numbers of people living in cars and garages and on the street, with 33,000 ghost houses sitting empty in Auckland, thanks in part to Key’s delectable tax haven, the rich enjoy a pitiful 2.8% tax on their obscenely large salaries while the minimum wage cleaner gets taxed an equally obscene 28%, almost ONE THIRD of their income! Consider also, if the latter work two jobs to survive they are secondarily taxed as well.

PM Key who it was rumoured earlier on, gave away most of his Parliamentary income … which it appears is pure spin

Consider also, this is a govt/corporation that is forcing people with cancer and undergoing chemotherapy even, to look for work. Most will know chemo seldom works and makes us feel extremely unwell while it’s being administered. These are the depths to which this government/corporation has sunk.


Now they’ve flogged off those P contaminated state homes (and the state housing corporation was making money) many of which  just happened to sit on prime real estate, they want to rip out the net completely & vilify the jobless for not working. They are quietly dismantling the welfare state, capitalism’s essential safety net, the kindly (?) human face, and replacing it with a tax haven for the super rich … and us? We can go eat cake.

PM Key at home with corporates and clearly endorsing the sale of our water resources for profit


Serious times folks. Check out Agenda 21/2030. Corporations owe their first legal allegiance to their shareholders. The illusion of a democracy is all we have now. Time for change!

Read Part 2

Thank you to Frances Louis, Rotorua mayoral candidate who drew this issue to my attention.

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Work and Income Sent Families to Garages

Centre for Welfare Reform report, by George Faulkner, 14 April 2016: In the Expectation of Recovery: misleading medical research and welfare reform

Welfare Group Warns Thousands Will Suffer After Changes


See how much tax John Key pays compared to a minimum wage worker

“The Prime Minister earns $428,000 from his PM’s salary along with this [last] year’s [2015] $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.

President Jose Mujica of Uruguay, dubbed ‘the world’s poorest president’

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 19841990 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?


John Key, NZ’s PM (Photo credit: The Daily Blog)


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……”

– See more at: http://thedailyblog.co.nz/2014/08/27/how-much-tax-does-john-key-pay-compared-to-a-minimum-wage-worker/#sthash.5qEHMYIk.dpuf