Sunday, September 1, 2013

We can't help but wonder...

So; if either David Cunliffe or Grant Robertson wins the Labour Party leadership, tax rates are going up, and the "living wage" will be implemented; whether businesses can afford to pay it, or not.

And we note that there will be a significant increase in the threshold at which point the top PAYE rate kicks in; David Cunliffe suggests that it will be what it was previously under Labour; around $150,000 per annum.

Leaving aside the fact though that when Labour was kicked out of office in 2008, the top rate of PAYE kicked in for income over $60,000 per annum, the rather arbitrary number of $150,000 has got us wondering.

And what we can't help but wonder is this; is the fact that the top tax rate will apply to income in excess of what a backbench MP earns merely a coincidence, or is it a very careful case of colleague-interest from the Labour Party leadership aspirant?

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