Analysis of Polls: What are the fairest tax rates for New Zealand overall?

We will analyse the results of three Polls on Neighbourly, a New Zealand social media suburb-based site.

The Polls were viewable by almost 25,000 residents (24,475) in suburbs surrounding my own in Titirangi in west Auckland. Very few people chose to respond. You can view the responses here:
https://www.neighbourly.co.nz/message/view/70275327
https://www.neighbourly.co.nz/message/view/70273456
https://www.neighbourly.co.nz/message/view/70269533

You can view my WordPress posts below:
https://aaamazingphoenix.wordpress.com/tag/tax/

New Zealand currently has a general election underway. Various parties have differing ideas about changes to the current tax rates:

We will consider mainly:

• The ACT Party tax rate proposal?
  17.5% tax under $70,000
  28% tax over $70,000
• The ACT Party tax rate proposal with the first $5,600 tax free (0% tax)?

In Poll 3 we looked at 70K increments and 60K increments in income, with the first $5,600 tax free:

See:
https://www.neighbourly.co.nz/message/view/70275327

This spreadsheet may be clearer:

You may prefer to view the PDF:
NZTax5600zero60

Results were about even for both sets of increments, with 60K increments being favoured slightly.

Update:

We add in the ACT tax rates below.

For the first $14,000 income, under ACT the tax rate increases from 10% to 17.5%.

17.5 / 10.5 = 1.6667

This is a massive 2/3 increase!

This means an extra 7 cents in each dollar will be paid in tax on the first $14,000 earned:

You may prefer to view the PDF:
NZTaxACT5600zero30

The problem with the ACT party proposal is that there is $980 extra tax up to $14,000K @17.5% vs the current 10.5% tax rate.

The extra 7% tax on the first $14,000 ($980) is best eliminated by introducing a new zero tax rate on the first $5,600 of earnings. $5,600 x 17.5% = $980.

We prefer the 60K increments and recommend their adoption.

We hope that when New Zealand is in a better financial position, the $5,600 tax free will be increased.

You may also like to view my original post for ideas from other political parties:

What are the fairest tax rates for New Zealand overall?

We have ignored subsidies since they may only apply to a limited number of people/ households. e.g. The most generous of the National Party’s subsidies only appears to apply to 3,000 households, 0.18% of households according to the media.

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