Originally Posted by PaulV
Originally Posted by Gambalunga
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 wink
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!

Well she is actually sacrificing $31,490 of her take home pay. What her annual take home pay is I would have to sit down and work out, if I could be bothered. It is a nice token and is probably enough to pay for one nurse for 6 month's, probably less than 6 months when you consider all the costs of employment. The tax fraction was not a gain for the government as they would have got that back anyway so it is only the after tax portion that is a gain for the government.

By the way I agree that this is going to be expensive for all of us and it is really going to be hard for some.

Last edited by Gambalunga; 15/04/20 09:52 PM.
Peter

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