How the new Labor tax takes the cream off Waikato’s fat cats

Some of the top earners in Hamilton face a tax increase from the Labor government big enough to finance a decent mortgage, while National promises to pay them back nearly $ 60 each week as a tax cut.

Both sides have offered totally opposite views on how the country should emerge from the Covid recession as tax looms as a key electoral battleground.

The work has pledged to reintroduce a 39 percent tax bracket for those who earn more than $ 180,000, leaving the 98 percent tax rate for wage earners intact.

National responded Friday with its own tax package, promising $ 4.7 billion in short-term tax cuts to help jump-start the economy.

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Putting more cash in the hands of New Zealanders is the best way to stimulate the economy, National finance spokesman Paul Goldsmith said, while suggesting that the Labor tax plan is symbolic in nature.

“Labor’s alternative is simply … raising taxes on those who earn the most. Well, it might make them feel better, but it certainly doesn’t help encourage more investment, ”Goldsmith said.

Under National’s plan, the lower tax threshold will be raised from $ 14,000 to $ 20,000, the middle threshold from $ 48,000 to $ 64,000, and the upper threshold from $ 70,000 to $ 90,000.

Labor finance spokesman Grant Robertson said his party’s plan to introduce a new tax rate will generate an additional $ 550 million in revenue.

Promises by other parties to cut taxes while increasing spending and reducing debt did not add up, he said.

And the Labor discourse to increase tax collection from the highest earners has generated new scrutiny over the pay packages of the nation’s highest-paid bureaucrats, some of whom are based in Hamilton.

At Waikato DHB, 407 staff make more than $ 180,000 a year, and four employees take home between $ 500,000 and $ 680,000. The Executive Director of the Board of Health, Dr. Kevin Snee, earns $ 548,544 a year.

The new Waikato Regional Council CEO Chris McLay, who is expected to take office in October, will start with $ 341,672. McLay’s predecessor, Vaughan Payne, received $ 361,344.

According to the regional council’s 2018/2019 annual report, eight employees earn between $ 180.00 and $ 252,000. Five of the eight officials hold executive-level positions and the remaining three are senior administrators.

Hamilton City Council Executive Director Richard Briggs is his organization’s top earner, earning $ 469,040 a year. Under Labor’s proposal, Briggs will pay an additional $ 333.51 per week in taxes. Another 15 members of the council staff take home between $ 180,000 and $ 300,000.

Briggs said he’s comfortable paying more taxes if that helps the country recover from Covid-19.

“Ultimately, like everyone else, I have a family to support and such, but I am also fortunate to have a job. So from a big picture perspective and from a personal perspective, if all those people who make more than $ 180,000 collectively make a difference, then that’s great, ”he said.

“I think it’s fair that there is some sort of income distribution model in place to ensure that everyone in the community gets what they need, I think more is needed with Covid.”

Hillcrest High School principal Kelvin Whiting confirmed that he makes more than $ 180,000 a year, but declined to say his exact earnings.

“It’s something that bothers me. As a school principal, I don’t think it’s appropriate. It’s a pretty sensitive issue, like anyone’s wages, ”Whiting said.

The principals of Hamilton Boys ‘, Hamilton Girls’ and Fraser High School did not respond Stuff inquiries about your earnings. A principal’s salary is influenced by a variety of factors, including the size of their school roster, the school’s decile ranking, and the number of staff.

Wintec CEO Dave Christiansen has a salary of $ 336,000, though it was effectively lowered to $ 299,000 after he agreed to a voluntary 20 percent pay cut in response to Covid-19. Six other Wintec employees earn more than $ 180,000 a year.

Sixty-three University of Waikato staff members are paid more than $ 180,000 a year, and the Vice Chancellor, Professor Neil Quigley, earns $ 517,000. Like Christiansen, Quigley, along with other members of the university’s executive team, took a pay cut in response to the pandemic, equivalent to 15 percent in six months.

Stephen Town, who heads the newly formed Hamilton-based New Zealand Institute of Skills and Technology (NZIST), will take home $ 688,235 a year, making him one of the highest-paid public servants in the country. Town’s six vice CEOs will earn between $ 253,249 and $ 392,214.

There are also 12 judges on the Hamilton District Court who are paid $ 358,100 a year.

In figures: How much additional tax will people with higher incomes pay under Labor

Dave Christiansen, CEO of Wintec: $ 336,000. Additional weekly tax: $ 180

Waikato Regional Council Incoming Executive Director Chris McLay: $ 341,672. Additional weekly tax: $ 186.54

Hamilton District Court Judges: $ 358,100. Additional weekly tax: $ 205.50

Richard Briggs, CEO of HCC: $ 469,040 (including Kiwisaver). Additional weekly tax: $ 333.51

Professor Neil Quigley, Vice Chancellor of the University of Waikato: $ 517,000. Additional weekly tax: $ 388.85

Dr. Kevin Snee, Waikato DHB Executive Director: $ 548,544. Additional weekly tax: $ 425.24

Stephen Town, CEO of NZIST: $ 688,235. Additional weekly tax: $ 586.43

Under National’s tax plan, those who earn more than $ 90,000 will receive a maximum weekly tax cut of $ 58.10.