Originally Posted by
elZorro
Artemis, I don't think you've been reading this thread for long. If you go back a year or two, we demolished that spin. Note that here we are only talking about income tax. People who are on the breadline and working, don't save any money. They need to spend it all each week. Most of it attracts GST at 15%, there are big fuel taxes and excise taxes on alcohol, power profit taxes, ACC payments, etc. Because there are a lot of these people in comparison with those at the top, all this tax, in various forms, makes up a significant part of the income for govt.
National trotted out this argument a long time ago, and they were shot down for it.