Snap

A new report out in Australia assesses effective marginal tax rates. People complain about them but they come about due to targeted assistance. Seems to me you cannot have your cake and eat it too. The following could be about New Zealand. Just substitute Working For Families for family tax benefit;

The report estimates 7.1 per cent, or 910,000 of working age Australians (215,000 Victorians), face an effective marginal tax rate of more than 50 per cent.

It shows high effective marginal tax rates have crept up the income ladder, mainly due to the expansion of the family tax benefit. "On the one hand families with children are getting much greater government assistance, on the other, this may encourage some people to work less," the report said.