Poor pay less and more

June 29, 2018

Transport Minister Phil Twyford says the poor will pay less fuel tax than wealthier people.

He’s right in dollar terms but if he’s worried about the impact that’s not what matters, it’s the proportion of income that counts:

“Transport Minister Phil Twyford is either very brave or very stupid in arguing that fuel taxes are easiest on the poor,” says Taxpayers’ Union spokesman Louis Houlbrooke.
 
“He is doggedly focusing on the dollar impact of the fuel tax, and ignoring the cost as a proportion of total income.”
 
“It’s no surprise that rich people buy more fuel – they buy more of everything. But people on low incomes spend a far larger proportion of their income on fuel, meaning a tax hike will have a far bigger effect on their real quality of life.”
 
“It only takes five minutes to graph Twyford’s figures and see the real impact of fuel tax.”

“The verdict is clear: fuel taxes whack the poorest almost four times as hard as they whack the richest.”
 
“It’s stunning to see such selective ignorance from a centre-left Minister who is meant to understand issues of fairness and equality. Isn’t this stuff Labour Party 101?”

As David Farrar points out, the poor consume less of almost everything (except tobacco) but spend a higher proportion of their income on it

The cost of the fuel tax will be greater for higher income people but the poor will pay more of what they earn on it:

Now let’s look at the average incomes for each decile

  • Decile 1 – under $23,900
  • Decile 5 – $64,400 to $80,199
  • Decile 10 – over $188,900

So the extra fuel tax as a percentage of income is:

  • Decile 1: 0.52%
  • Decile 5: 0.27%
  • Decile 10: 0.14%

Let’s not forget it’s not just the direct cost that will hit the poorest hardest.

Every service and all goods with a transport component (and can you think of anything that doesn’t have one?) will be impacted by the tax and that will, sooner or later, lead to price increases, inflationary pressure and interest rate rises.

The Ardern/Peters/Shaw/Davidson coalition government, all parties in which purport to represent and work for the poor, is adding to the cost of living and making life harder for them.

And adding to that is yesterday’s announcement we’ll all be paying an extra 10.5 cents a litre over the next two years in excise tax.

P.S.

Michael Redell writes on regressivity, petrol taxes, and ministerial PR at Croaking Cassandra.

Thomas Lumley examines the issue at Stats Chat.

Sam Warburton tweets on it here.

 


On the first and second day

December 6, 2017
From Stats NZ:

On the first day of #Christmas Stats NZ sent to me
the price of a pavlova recipe. #12daysofchristmas

No automatic alt text available.

Stats Chat discusses the cost comparison for the pavlova here.

On the second day of #Christmas Stats NZ sent to me
660 hectares of cherries ripe for picking, hmm… tasty.
#12daysofchristmas

Note: 1 hectare ≈ 1 international rugby union field.
As at June 2014 there were 660 hectares of cherries planted across NZ.

Image may contain: food


Olympic Venn diagram

August 22, 2016

Hat tip: Stats Chat


Map of NZ’s political geography

January 7, 2014

Political tragics will be interested in Chris McDowall’s hexagonal maps of New Zealand’s political geography at Hindsight which include this one:

hexmap

Hat tip: Stats Chat.


Small risks sooner better than big ones later

March 14, 2012

Quote of the day:

“It’s better to learn about risk and consequences and controlling your emotion when you are 8 and up a tree, than when you are 18 behind the wheel of a Subaru, getting chased by the cops.”    Professor Grant Schofield.

He was commenting on the Milo State of the Play survey which shows that children have less playtime than their parents and grandparents did.

P.S. Thomas Lumley critiques reports on the survey in Run Along and Play at Stats Chat.


Seeking stats good and bad

August 10, 2011

Stats Chat is running a Stat of the Week competition with the chance to win an iTunes voucher:

  • Anyone may add a comment on this post to nominate their Stat of the Week candidate before midday Friday August 12 2011.
  • Statistics can be bad, exemplary or fascinating.
  • The statistic must be in the NZ media during the period of August 6-12 2011 inclusive.
  • Quote the statistic, when and where it was published and tell us why it should be our Stat of the Week.

Next Monday at midday we’ll announce the winner of this week’s Stat of the Week competition, and start a new one.

Follow the link above for the fine print.

Idealog reports that Stats Chat is run by Auckland University’s Department of Statistics.

“We’re looking for bad, exemplary or fascinating examples of statistics,” says blog coordinator Rachel Cunliffe.

Professor Thomas Lumley, a regular contributor, wants New Zealanders to be more aware of statistics and the role they play in the media.”

“We see numbers in the media every day and we want people to think carefully about them – what they actually mean and whether or not they make sense,” he says.

Those who adhere to the Stratford Theory of Numbers will know they often don’t make sense and will have no difficulty finding examples to prove it.


%d bloggers like this: