What does your tax buy?

Ever wondered exactly where the tax taken from your hard earned income goes?

You can find out here.

The biggest proportion goes to the Ministry of Social Development (about 27% if my calculations are correct). Health,  Education, Inland Revenue,  Treasury, Transport, Defence Force, Labour, Police and Corrections get the next biggest cuts. After that its spent on Economic Development, Justice, Building & Housing, Foreign Affairs and Trade,  then Research, Science and Development.

Then the money goes to Environment, Agriculture and Forestry, Conservation, Internal Affairs, Defence (not sure why the Ministry of Defence is different from the Defence Force), Culture and Heritage, States Services Commission, Justice, Te Puni Kokiri, Land Information NZ, Customs, Parliamentary Services, Statistics, Fisheries, Food Safety Authority, National Library, Crown Law and Government Security Communications Bureau.

After that the money goes to the Department of Prime Minister and Cabinet, Education Review Office, Archives New Zealand, Parliamentary Counsel Office, Office of the Clerk of the House of Representatives, Ombudsmen, Serious Fraud Office, Pacific Island Affairs, Women’s Affairs and the last few cents go to the Parliamentary Commissioner for the Environment.

Calculations are based on the 2010 Budget and there have already been changes, for instance Archives and the Parliamentary Library have been combined and a Primary Industry Ministry is being formed from Agriculture, Forestry and Fisheries.

If you earn $20,000 it calculates you pay $2,520 in total of which $681.13 goes on welfare and 10 cents contributes to the environment commissioner.

If you earn $50,000 you contribute $8,020 to the public coffers, $2,167.73 to the social development ministry and 32 cents to the commissioner.

Those on $100,000 pay $23,920. MSD takes $6,65.34 and the commissioner gets 96.

If you’re earning $500,000 you pay $155, 120 in tax contributing $42,143.62 to the MSD and $6.24 to the Environment Commissioner.

Hat Tip: Credo Quia Absurdum Est.

3 Responses to What does your tax buy?

  1. Cadwallader says:

    More telling would be to learn how much of the fuel tax goes back in to roading. When fuel tax was first introduced it was for the exclusive purpose of maintaining roads but I believe it is now drawn in to the overall income of the state.

  2. homepaddock says:

    The AA (http://www.aa.co.nz/about/issues/fuel-taxes-fines-charges/Pages/Petrol-tax.aspx) says: When you last bought petrol, 59.129 cents per litre was collected by the government as fuel excise (excluding GST), which is made up of:

    •48.524 cents – National Land Transport Fund
    •9.90 cents – ACC Motor Vehicle Account
    •0.66 cents – Local Authorities Fuel Tax
    •0.045 cents – Petroleum or Engine Fuels Monitoring Levy
    In addition, GST is collected on the overall price of fuel including excise. The GST on excise amounts to a 7.7 cents per litre “tax on taxes”.

    There are no taxes on diesel other than GST. Instead, diesel vehicles pay Road User Charges. All fuels also pay an Emissions Trading Scheme charge (approximately 3 cents per litre).

    It is now government policy for all of the petrol excise tax motorists pay to be directed to the National Land Transport Fund for investment back into New Zealand’s road and transport system. The AA lobbied hard on behalf of motorists for many years to have all the taxes devoted to road building and maintenance, road safety education and enforcement, and subsidies for public transport.

    Previously, about 19 cents per litre of the tax motorists paid on petrol was diverted by the government to non-road and transport related projects.

  3. Sinner says:

    Buy? Buy?

    My taxes don’t buy anything.

    Rather of $100 tax (enter 953 for income 🙂

    28% is wasted on welfare – half for the under 65s and half on the over 65$

    another 17% is wasted on the health system – paying for bludgers who don’t care about themselves and their families enough to take out health insurance.

    and another 16% is wasted on the “education” system – paying for bludgers who don’t care enough about their kids to pay for their schooling privately.

    And that’s 61%. Them IRD, Cops, Army, Transport is another 20%. Now they don’t “buy” anything but they are useful. The rest – 20% – is basically a whole lot of smaller things that we mostly need. All those “boutique” ministries etc – one twentieth of one percent. Chopping the ministry of women saves nothing

    The only place for big savings are in benefits; health; and education. Those are the nice-to-haves!.

    Of course we can’t afford to reduce any personal taxes (although the figures make very clear indeed the need to cap individual taxes at say 50,000)
    Clearly corporate taxes need to go to zero as soon as possible.

    But we’ve the best part of $200 Billion dollars of debt to repay –

    and that’s before the $100 Billion we’ll need to fix Christchurch

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