I wonder if the pollster had read this statement first, would it have changed the answer?
We have a progressive tax system. The more you earn, the higher the proportion of your income you pay in tax. The top 10 percent of earners pay 48 percent of all personal income tax.
But we also have a progressive system of government transfers. Those with the greatest needs receive the most.
When the IRD takes the tax people pay and subtracts the benefits and tax credits they receive, it finds that the top 10 percent account for 101 percent of net income tax.
But we also have a progressive system of government transfers. Those with the greatest needs receive the most.
When the IRD takes the tax people pay and subtracts the benefits and tax credits they receive, it finds that the top 10 percent account for 101 percent of net income tax.
How can it be 101 percent?
The other 90 percent, taken together, receive slightly more in benefits and tax credits than they pay in income tax.
The top 10 percent therefore provide all the net income-tax revenue — and a little more.
If the poll question had been:
“The top 10 percent of earners provide 101 percent of net income tax. Do you think they should pay more?”
Would 64 percent still say yes?
The top 10 percent therefore provide all the net income-tax revenue — and a little more.
If the poll question had been:
“The top 10 percent of earners provide 101 percent of net income tax. Do you think they should pay more?”
Would 64 percent still say yes?
The Honourable Richard Prebble CBE is a former member of the New Zealand Parliament. Initially a member of the Labour Party, he joined the newly formed ACT New Zealand party under Roger Douglas in 1996, becoming its leader from 1996 to 2004. This article was sourced HERE
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