Sunday, August 21, 2005

Early Hint on Tax Cuts

Don Brash has said his Government will change significantly the way second jobs are taxed.

..."we will change the way in which tax is collected on secondary employment. We will collect that tax. at a rate below 20 cents in the dollar, unless the taxpayer asks, in anticipation of a higher tax obligation, for collection to be at a nominated higher rate..."

This is a smart move as it highlights an area of the economy - kiwi battlers if you will - where the hurdles are too high for many to take another job; so they don't.

In my generation many of us had two or three jobs so as to get the capital to get ahead. At that stage of your life you have the time, energy and incentive to have a go. The incentives are not there now. Worse still with the abatement regime under WFF. (actually it is an interesting acronym - is it Working For Fucks sake? seems like it eh! just the sort of mis-incentive we have come to expect under Labour - why work if someone else works for you...see my earlier blog on the ant and the grasshopper)

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