Since the NZ tax in income over $70,000 is 33% that means that she is actually sacrificing 6.7% of her annual salary. It is nothing more than a token. More a public relations stunt than any real sacrifice. ...
It's late here but I am trying to do the maths here... Dropping salary by 20% of which 33% is tax anyway... but her takehome pay will still be reduced by 20%?
ie 20% of 67% of £250K is the same as 67% of 20% of £250K? Ignoring the lower tax bands of course
The actual amounts are a bit less of course...
But I suspect this is something we will all have to live with (ie financial haircuts). An extra 20% income tax and extra NI or some percentage of everyone's pension funds... could all well be coming!
