Maybe that's the effective rate on some kind of average income? Or the
See:
http://www.ird.govt.nz/calculators/keyword/taxrates/calculator-tax-rate.htmlFrom running through that calculator I get
Income up to $14000, taxed at 10.5%
Income over $14000 and up to $48000, taxed at 17.5%
Income over $48000 and up to $70000, taxed at 30%
Remaining income over $70000, taxed at 33%
For context, it looks like:
NZ$14000 = US$9567.04
NZ$48000 = US$32801.28
NZ$70000 = US$47835.20
So they have a lower top bracket than we do, but it kicks in at a much lower income, and they tax from the first dollar. I don't know if they have a payroll tax (like FICA in the US). Between employee and employer we pay 15.3% starting with the first dollar up to around $120k in FICA in the US, so unless they have an additional payroll tax, we actually pay even more on that first US$9500 than they do despite our deductions and exemptions.
It would take more research, but I see nothing about filing married, so I suspect every income earner is taxed separately based on their own income, so no advantages for lower income spouses as we have in the US.
I would be curious to learn what the total tax burden of a median family income including payroll taxes is in each country, either the ~$60k US median, or whatever the median for the country is. Even more interesting would be if the cost of health insurance in the US could be included as a form of tax. I suspect if you figured it all in the notoriously "low tax" US system wouldn't look so good any more.
