Wednesday, May 19, 2010

What my family's tax cut could REALLY mean

The tax cuts in the Budget could mean my family will be better off to the tune of about $55 per week.

What does that REALLY mean for my family?

With the increase in GST expected, DPF helpfully says the Tax Working Group estimated that GST, on average, is 5% of income for top decile earners, so our household's GST increase will be about $1,100 per annum, or about $21 per week. That's reduced my family's tax cut to about $34.00 per week.

If we then add the extra 5% added to electricity prices because of the ETS, that will reduce it to about $31.

Then if we add the extra 5% added to petrol because of the ETS, that will reduce it to about $26.

Then if we add the 8% that my council is adding to my rates bill from 1 July, it is reduced to about $23.50.

Then if we add a further 5% (approximately) that will be added to general economy costs as a result of the ETS in general, it is reduced to about $22.00.

Then if we add the lift in mortgage rates as a result of the inflation-led ETS (a fact confirmed by Dr Bollard), in a few months I will be paying an extra .25% on a relatively hefty mortgage, it is then reduced even further.

The result is that I expect my family to be worse off to the tune of about <$3.50> per week from tomorrow's Budget.

In all likelihood this will be a Red budget for most families, in more ways than just Bill's Bottom Line. Make no mistake, we will be poorer for it.

I just thank my lucky stars I don't have any investment properties any more, which if I did, would make this rich prick even poorer.

6 comments:

Manolo said...

More and more taxes courtesy of this bunch of socialist policians led by Key!

Anonymous said...

Remember, if Goff was in power, you would have even higher ETS charges and no tax reductions!

Inventory2 said...

True Anon; also Gooner, I think you'll find the increase in fuel is 5c/litre, not 5%. You might just have enough of an increase to get yourself a latte, or possibly even a 5oz beer!

Anonymous said...

Remember, if Goff was in power, you would have even higher ETS charges and no tax reductions

Goff isn't in charge, the Tories haven't reduce the ETS charges one bit and we still don't have any real fucking tax reductions

If Cullen sent down the "chewing gum" budget
then isn't even the loo paper budget.

Cactus Kate said...

If Cullen sent down the "chewing gum" budget
then isn't even the loo paper budget.

Quote wins.

Tomorrow will be the tax cut you get when you don't have a tax cut.

Gooner said...

IV2 - the 5% petrol is the actual dollar increase estimate I get from the 4c per litre increase when calculated across our family's petrol usage (in litres) across the week.