Labour’s looming $3.5 billion tax hike
Inflation is at 7% and families are struggling with the extra cost of food, petrol and housing (and more). What many don’t realise is later this year Labour plans to legislate to cut people’s take home pay by up to $1,800 a year. It is their compulsory income insurance policy. This is how it will work:
- Funded by a massive $3.5 billion a year take hike on all employees and employers
- Employees will have an extra 1.39% tax which will reduce their take home pay by up to $1,820 a year or $35 a week.
- Employers will have an extra 1.39% tax on staff which will see them boost prices making inflation worse
- People who are made redundant etc will get paid by taxpayers up to $400 a day to remain unemployed for six months (and one month from the employer). If they get a new job, they will lose their insurance payments so they will be incentivised to remain unemployed for the full seven months.
So the net effect of this policy is:
- Inflation will increase
- Take home pays will decrease
- Unemployment will increase
This $3.5 billion annual tax increase will be the largest tax increase in over 30 years. The only way to stop it will be to change the Government.