Ok, back to the tax concern about the level to which middle and high income earners are taxed. IMO income tax brackets need to be moved upwards inline with the cost of living and on a more progressive scale as they’re set too low and currently move up in large steps:
http://www.ird.govt.nz/how-to/taxrat...etaxrates.html
$70000/yr salary might sound like decent amount of money -and about what a Q300 CA can expect to make- btw those Air Nelson (Air NZ link) pilots recently went out on strike over pay issues.
http://www.nzherald.co.nz/section/1/...ectid=10500268 But, when you consider that the cost of living is the equivalent of living in SAN or LAX (as is the case of living in AKL) and then having it taxed at 40 cents/$, all of a sudden that salary doesn’t seem go vary far at all. And yes, you’re correct, the higher cost of living there is in part related to contributing factors such as a moderately high minimum wage which is currently set at $11.25NZ-read more about it here:
http://www.ers.dol.govt.nz/pay/minimum.html and the level of tax employers must pay to the government to pay for services such as free healthcare.
Another concern that has not been addressed by the government for decades is the eroding infrastructure. Back in the mid 1970’s the National government of the day, headed by the late Rob Muldoon, embarked on a radical series of major “think big” projects to development NZ’s core infrastructure. Read more about it here:
http://en.wikipedia.org/wiki/Think_Big
These consisted of major infrastructure projects such as energy: hydro, geothermal, coal, power plants, electrical grid; and transport: rail, motorways, petroleum refining capability, etc. The government borrowed billions form overseas to pay for it all but the infrastructures were built to a level at the time that had inherent surplus capacity to last for many years. In the years since then not much in the way of new major infrastructure has been built to replace these ageing components. Many of the systems are now reaching, or are now at, capacity and will soon need to be replaced. The country does not appear not the money to pay for these new infrastructures. So, the effects from this that NZ could see in the future are occasional power brown outs/black outs; much the same as in California. I really think the government needs to get their priorities straight and start addressing these things. But the problem is that I don't think that they don’t see it as being there problem, as they sold off most of these assets to private enterprises years ago. The private enterprises are reluctant to invest the money least they don’t get their desired ROI for their shareholders. This is the case with Telecom NZ, that for lack of better a word, has a muntered telecommunications network. A large percent of the rural countryside outside of the main cities is still on dial up internet access. Why? Because Telecom doesn’t want to invest too much more into high speed fiber optics in those areas, as they don’t see it as being worth the investment yet. So when are these for of issues going to be fixed? I don’t know.