The fairness, or not, of secondary tax

I have a post up at Public Address on secondary tax.

“What are you going to do about secondary tax?” people ask me. “It’s not fair to charge people more tax just because they’ve got a couple of part time jobs.”

It’s a common mistake. And it’s easy to understand why people think they’re paying more tax. If you have two jobs, each paying $250 a week before tax, then in the first job, you will end up with about $220 in your pocket, and in your second job, you will end up with $202 after tax and ACC has been deducted.

Here’s the problem. If you didn’t pay secondary tax, and just paid the same amount of tax on each job, then at the end of the tax year, you would end up a big tax bill.

Click here to read the rest of the post over at Public Address

There’s an extended discussion about secondary tax in the comments section there too.

Many thanks to Russell Brown at Public Address for hosting the post.

This entry was posted in Economics, Taxation and tagged , . Bookmark the permalink.

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