Lower income earners to lose out under National's tax plan
Updated 3:07PM Wednesday Oct 08, 2008
Edward Gay and NZPA

Lower income earners who get Working for Families, lower income KiwiSavers and companies receiving research and development tax credits are the losers under National's tax package announced today.

While many taxpayers will get a boost in income from April next year under National's tax package and more overall by April 2011 than they would under Labour's tax plans, some groups lose out.

Those receiving the Government's Working for Families package who earn under $44,000 a year will get slightly less under National than under Labour.

Someone earning $40,000 a year will get $5 a week less by April 1, 2011, a person on $30,000 will get $7 a week less and someone on $20,000 will get $9 a week less.

That is because National has introduced a new "independent earners rebate" for those earning between $24,000 and $50,000 who do not receive Working for Families.

Lower income earners who belong to KiwiSaver will also potentially miss out on some subsidies under National's plan.

More here.