Discussion in the Standard.
“The so called reforms in the 80′s and 90′s resulted in a drop in income for the majority, 80%, over the period”
“Since there was little income growth, the net effect of the fiscal changes was to switch income from the poor and those on middle incomes to the rich”.
“Weekly incomes have stagnated since 2008.”
“Incomes for most people, have dropped since the 70′s”.
“Almost constantly apart from a brief slow down of the drop from 2000/2008″.
“For the middle class in skilled jobs it has dropped 40%.”
People are borrowing to live because NZ incomes have dropped below costs..
A better option may be to simplify all welfare, tax and tax rebates into a minimum individual income administered through IRD. With a flat rate up to 200k after that. Those earning over 200K are benefiting the most from our society, so should pay the most towards it.
The difference can be made up with FTT’s, a CGT on all but the family home (up to twice the mean house price) and pigonian capital control taxes.