New Zealand Budget 2008: Tax cut calculator 2

In a previous post we mentioned the Infometrics and Labour tax cut calculator.

Now NZIER have updated their tax cut calculator that compares Australia and New Zealand – the excel model can be found on their front page (or here in the future):

http://www.nzier.co.nz/

I also talked to Dr Nolan about the set of tax calculators that have been released and he asked me to remind everyone that the October 2008 cuts will only give you half of the total shown in the calculators – as they are in per annum terms but October-April is only six months long. So someone on 60,000 will get a $430 tax cut this financial year, and then a $860 cut over the 2009/10 financial year.

Furthermore, the level of wage growth assumed by the Labour and NZIER calculators both assume wage growth of about 3%pa – marginally slower than the current rate.

Update: David Farrar at Kiwiblog also mentions a Deloitte Tax Cut Calculator that was sent to him. I don’t know if excel has ever been this popular 🙂