No two tax cuts impact the economy in the same way.

Effective marginal tax rates on single and dual earner families in the USA, Britain, France, Germany, Canada, Italy, Sweden, Denmark, Australia and New Zealand

Some countries including New Zealand and Australia do not give ordinary families much of an incentive to earn more. Effective marginal tax rates on low income families is one of the few times that the Left discovers supply-side economics.

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Source: Taxing Wages 2015 – OECD 2015.

British all-in average personal income tax rates at average wage by family type, 2000, 2007, 2014

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Data extracted on 25 Jan 2016 01:07 UTC (GMT) from OECD.Stat.

Better than Sweden! All-in average personal income tax rates at average wage by New Zealand, Swedish and Danish family type

image

Data extracted on 25 Jan 2016 01:07 UTC (GMT) from OECD.Stat.

US, Australian and NZ all-in average personal income tax rates at average wage by family type

image

Data extracted on 25 Jan 2016 01:07 UTC (GMT) from OECD.Stat.

New Zealand 2000, 2007 and 2014 all-in average personal income tax rates at average wage by family type

In work tax credits for families in Working For Families certainly makes a difference to the after-tax, after government transfers living standards of the family on an average wage.

image

Data extracted on 25 Jan 2016 01:07 UTC (GMT) from OECD.Stat.

The minimum wage and poverty

How in-work family tax credits help

@BernieSanders @HillaryClinton working 40 hour on #minimumwage doesn’t leave you in poverty in America

@BernieSanders had a seniors moment on the EITC

 

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The minimum wage and escaping poverty across the OECD area

Taxes on minimum wage earners across the OECD area

Poverty traps: would a minimum wage increase take-home pay?

How many hours to work your way out of poverty across the OECD?

If government “programmes have been doing very little to help children out of poverty”, what halved child poverty in the last 20 years? Economic growth?

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Figure 1: child poverty (%) in New Zealand (before and after housing costs), 1982 – 2013

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Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014), Tables F.6 and F.7.

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