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The Green Party’s tax plan (www.greens.org.nz)

submitted 4 days ago by BaconWrappedEnigma@lemmy.nz to c/politics@lemmy.nz

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Some interesting "Wealth Tax" ideas in there and proposed changes that would net an extra ~$5B (estimated).

Big corporations tax: The corporate tax rate will be increased from 28 percent to 33 percent for big companies with annual turnover exceeding $30 million. This will impact about 0.7 percent of businesses (e.g. banks, supermarkets and energy companies).

And new income tax rates:

Current

Income band	Tax rate
0 - $15,600	10.5%
$15,601 - $53,500	17.5%
$53,501 - $78,100	30%
$78,101 - $180,000	33%
$180,001 and over	39%

Proposed

Income band	Proposed rate
$0–$9,999	0%
$10,000–$19,999	10%
$20,000–$39,999	17.5%
$40,000–$59,999	25.5%
$60,000–$79,999	30.5%
$80,000–$159,999	33.5%
$160,000+	45%

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[–] absGeekNZ@lemmy.nz 1 points 1 day ago* (last edited 1 day ago)

Corporate tax? Every $ they’re paying tax on could have been used to pay their employees better.

You know that the tax is paid on profit right; money they pay to employees is an expense and thus not taxed.

They could pay their employees more and reduce their tax burden currently and in the Greens tax plan.

Lets run a thought experiment:

If we raised the corp tax rate to 100%; all profit goes to govt shareholders/owners get nothing.
Corps would work very hard to ensure their expenses; matched as closely as possible to the income they receive.
One easy way to do this is at the end of the tax year; give bonuses to employees (who then pay income tax) to balance your expenses exactly to your income.

And another:

If we drop the corp tax rate to 0%; all profit goes into the pockets of the shareholders/owners
Corps would work very hard to ensure the expenses are as low as possible to get the most for those who own the business.
One easy way to do this is to squeeze the employees pay as low as is possible.

Obviously there is a happy medium between 0-100%; that exact number is up for debate. But lowering the corp tax rate does not necessarily incentivize higher employee pay. In fact the opposite would be true in many cases; especially in mature industries where labor is not constrained.