Reference List

Adrian, C. (2009, April 1). Who gets a tax cut? BusinessDay

Andrea, M. (2009, April 5). Stretching out your dollar. NZ Herald News, p. 1.

Audrey, Y. (2009, April 4). English promises some deficit relief in Budget. NZ Herald News.

Chaire, T. (2009, Markch 31). Wage packets about to become fatter. NZ Herald News.

David, C. (2009, April 9). An Easter (tax) declaration. NZ Herald Blog.

Make your tax cut work for you. (2009, March 31). Scoop Business.

Maria, S. (2009, March 30). Go on tax rule changes. NZ Herald News.

Tax cuts bring mixed fortunes. (2009, March 28). NZ Herald News, p. 2.

Trade Unions attach tax cuts. (2009, April 1). NewstalkZB.

What will you do with your tax cut? Will you give it to charity? (2009, March 19). NZ Herald Blog, p. 1.

Cut Down Tax

Are you familiar with 'tax cutting' on 1 April 2009? If you are, is it effect on you? and how it effect on? positively or negatively? or do not effect on you at all? Or you do not care about it?
If you do not know much about 'tax cutting', here is for you.

John Key stated that decreasing tax is for people to get benefit from it and the main targeting is middle income New Zealanders.

'The tax cut' table, it has worked from 1 April 2009. According to John Key, there is less than $20 per week tax cut for approximately 280,000 earning people between $50,000 and $70,000 while the highest income earner get 1% dropping in their tax (39% drop down to 38%). New independent earner's credit is introduced for lower earner (about 630,000 people).

There is mixed fortunes for New Zealanders as cutting down tax. To a family, they are getting more $36.92 per week if their average income is $48,500. But they need to pay off ACC levy which cost $5.60 therefore total $31.92 per week them to get.

In the short run, this tax reduction is keeping up economic cycle as supporting the spending of people. In the long term, the government wish is that New Zealanders to clear off their debts such as a mortgage for reinvigorate economy.

It is said by Diana Crossan as a Retirement Commissioner that New Zealanders should spend money, which is from cutting down tax on interest debts instead of daily expense. Add on more, she stated that when people are only clear off the minimum repayments monthly, they take time to clear their debts. So, pay off more than the minimum amount of money to debt is suggested by her for reduces quicker.

Actually, I agree with her suggestion. I think it it better for reinvigorate economy. Even I am international student which means, I have no direct effect on tax cut. But, still I worried about the high ratio of the mortgage.

John Key hopes to people to charity from their unneeded spending tax cut for active in an American-style culture.

I pretty interesting on whether people will give it to charity or not. For me, honestly, I will only charity if I earn. In fact, I am not working at the moment. But, when I worked previously, if the tax cut appear at that time, maybe I could charity no more than 5 times. What will you do that extra money from the tax cut?