Kiwis wealthier as incomes soar
By COLIN ESPINER - The Press | Wednesday, 20 June 2007
Feeling wealthier? Statistics say you should be, even though most people are paying more tax.
Statistics New Zealand figures, taken from the 2006 census, show median personal incomes have jumped 32 per cent since 2001, while family incomes are up 28 per cent.
The increases are "real" because wages outstripped price rises, with the price of goods and services, as measured by increases in the consumer price index, up by 13 per cent over the same period.
However, National says the increases mean people are paying more tax because of "bracket creep" – taxpayers moving into the next tax bracket as their income increases.
When Labour came to power in 1999 it promised that no more than 5 per cent of taxpayers would pay the top tax rate of 39c in the dollar on income over $60,000. The statistics show that is now over 10 per cent.
The biggest increase in median incomes was in the $50,000 to $70,000 income band, with the number in that bracket increasing from 6 per cent in 2001 to 10 per cent.
The numbers in the lowest income bracket of $5000 to $10,000 dropped from 13 per cent to 8 per cent over the same period.
The median income means half receive more and half receive less than this amount.
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