Poll result: 67% say they will save extra disposable income from personal income tax cuts
Our opt-in opinion poll of readers found that more than two thirds planned to save or repay debts with any extra disposable income from the personal income tax cuts that kicked in after October 1.
The poll asked the following question:
What are you planning to do with any extra take-home pay after the October 1 income tax cuts?
The results were as follows:
Save it or repay debts. This money is going straight in the bank to repay the mortgage or build up a term deposit. Safest and easiest. 67% (329 votes)
Spend it. It's time to have some fun. The sun is shining. This recession has been long enough. Life is short. 15% (73 votes)
Buy some time by 'trading down' to a job that requires fewer hours worked but generates the same after tax income. 7% (36 votes)
The poll remains open. Vote here.
Here is the new poll: Do you support Labour's new policy of blocking foreign ownership of farmland and monopoly assets?
4 Comments
Where was the " Spend it: I have no choice as the GST increase has already taken it from me" alternative? "Spend" didn't have to assume the 'life is short' clause. Perhaps ' disposable' covers that, but in that case many will still have little to answer the questions with.
Exactly! I went to take the poll the other day, but there was no choice for the option I expected, so I couldn't vote. I was looking for something like "I will spend the extra money I'm left with after the tax cuts on the higher cost of living".
Real inflation this year is going to be quite high in my opinion. The GST increase is a great opportunity for businesses to put up their prices, and I've seen evidence of it already. Anyone who says it will not put up prices more than the nominal GST amount is kidding themselves. A change of currency is another good opportunity; when the Euro was introduced the effective price of many things went up; the price of flowers and eating out went up significantly overnight.
The future is clear. The cost of living will increase as purchasing power goes down. Expect that with each passing year you will on the whole have less and less surplus.
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