7. Hon TREVOR MALLARD (Labour—Hutt South) Link to this
to the Prime Minister
In light of the answer given on his behalf to Oral Question No 2 on 15 June, is it his opinion that real average after-tax wages do not go up when high-income earners get tax cuts and low-income workers lose their jobs?
Rt Hon JOHN KEY (Prime Minister) Link to this
It is my opinion that real after-tax wages go up when the economy becomes more productive and people get to keep more of the money that they earn. That is why the real after-tax wage has gone up by 10 percent since 2008, but went up by only 4 percent over the 9 years before that under a Labour Government.
Hon Trevor Mallard Link to this
What does happen to average net after-tax wages when high-income earners get tax cuts?
That would be subject to, and depend on, a number of factors. It is not possible to say immediately, because it would depend on, amongst other things, the inflation rate, the number of people who are working, and various other component parts.
Hon Trevor Mallard Link to this
I seek leave to table a document that was prepared by the Parliamentary Library, which shows the increase in average wages as a result of the National Government’s tax cuts for the rich.
Mr SPEAKER
Hon Annette King