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Death and Taxes

Didn’t Oscar Wilde say everything was negotiable - except death and taxes?

sunny 15 °C

On October 1st the tax structure changes in New Zealand, this is not negotiable! At the same time the GST (goods & services tax) also changes. The GST will go up (from 12.5% to 15%) and income taxes will go down; in effect it is sort of a wash. Stores are having huge promotions to sell sell sell before the new GST. If you are buying a car or boat, yes makes good sense! Since discussion of taxes is so incendiary & polarized in the US, I thought this topic might be interest so people can take a look at what NZers pay.

When you buy a pair of shoes GST is added like sales tax, yet when you have dinner out you are charged GST but your bill is all inclusive as there is NOT any TIP expected. At first the prices seem extraordinarily high but then you realize “ahhh no tip” so it softens the blow a bit. I have spoken with Kiwis who freak out with the US tipping process; it is just so confusing to them.

Income tax rates: Now… imagine if people at the upper end of the range in the US paid this much tax! How would life in the US change?! Interesting thought experiment ‘eh?

Income Current rate New rate
$0 - 14,000 12.5% 10.5%
$14,001 – 48,000 21.0% 17.50%
$48,001 – 70,000 33.0% 30.0%
Over $70,000 38.0% 33.0%

However, as I understand it, let’s say if you make $50,000 you don’t pay all of your tax at that 30% bracket. You pay 10.5% for your first $14,000, then you pay 17.50% for the next chunk of change, and then you pay 33% for that last little bit ($1,999.00). The fiscal year runs March to March.

Today – Sunday - was a nice relaxing day. We hung out at the beach, windy but nice or fine as they say here. We also changed our clocks today so got to “spring forward’. Howard and I celebrated 24 years of living together today. Amazing! Next up is our wedding anniversary in February! Moving the next two weekends & am REALLY looking forward to being in the new place. Cheers!

Posted by Hilary G 00:12 Archived in New Zealand Tagged light day taxes savings gst

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