Helping the rich!

A comment in another post got me curious. How does Kiwi Saver affect people at different income levels compared to National’s 2005 tax policy?

On $50,000 you get $2,370 from National’s tax cuts and $670 more or $3,040 from Kiwi Saver. Fairly close. Note with tax cuts you are getting all your own money back and with Kiwisaver it is a mixture of taxpayer money and employer money.

For someone on $100,000 there is not much difference. National’s tax cuts would give you $4,770 and Kiwi Saver $5,040.

But go to a Marketing Manager on around $130,000. Under National they get $4,770 and Labour gives them $6,240. That is around $1,500 more.

A General Manager on around $220,000 gets $4,770 from National and $9,840 from Labour. An extra $5,000.

A CEO on $350,000 would get $4,770 from National and $15,480 from Labour. An extra $10,000.

And the CEO of Telecom would get $4,770 from National and $61,040 from Labour’s Kiwi Saver. Theresa/Marco thanks you for the extra $56,000.

Dr Cullen has given an unprecedented windfall to those on ultra-high salaries. He will be the toast of highly paid employees everywhere.