Thursday, April 02, 2015


A caller to Leighton Smith earlier this week talked about the 30:30:30:10 principle.

It's new to me but sounds entirely plausible.I am assuming he is talking about the population aged 15+

-30 percent  relies on government benefits.

-30 percent  relies on tax credits and effectively pay no tax.

-30 percent  pays the tax that supports the first 30 percent.

-10 percent pays for the other big ticket items like  health, education etc.

As the caller observed, the ratios might differ slightly over time and at various times.

Has anyone come across this before?

The caller was concerned about how far down the 10 percent could be whittled....


Anonymous said...

actually it's much worse. when you factor in "big ticket" items like health, education & super - middle class welfare - that is basically 3/4 of the govet spending: the other 1/4 is welfare.

the real story is: 10% pay for everything for everyone else: health, education, super & benefits.

Lindsay Mitchell said...


... Treasury earlier this year [2013] estimated that this year households earning over $150,000 a year – the top 12 per cent of households by income – will pay 46 per cent of income tax.

But when benefit payments, Working for Families, paid parental leave and accommodation support are taken into account, these 12 per cent of households are expected to pay 76 per cent of the net income tax. And that is before New Zealand Superannuation payments are counted.

Anonymous said...

I'm counting individuals and super.

You're counting households and ignoring the codger dole...

Lindsay Mitchell said...

My post said "pop 15+."

I am including Super in the 30% receiving govt benefits. Only 10% of the working-age pop (18-65) receive govt benefits.