READER REPORT:

It's time to abolish secondary tax

PETER MAJORHAZI
Last updated 05:00 03/12/2012

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Has any body noticed the job adverts over the last few years? Most jobs advertised are part time. Why is that?

These days you need to have a couple of jobs to make ends meet. But it is hardly worth it because of the dreaded secondary tax.

Is it not time to abolish this antiquated extra revenue grabbing? Are there any other countries that have this unfair system? Even Work and Income policy states full-time work is 30 hours per week. What happened to the 40-hour week?

In the utopian world of the 60s and 70s everyone was just about guaranteed a full-time job, therefore you were penalised if you had two jobs.

Today jobs are 15-20 hours per week and if you are lucky you can find another job of 10-15 hours.

Now you have to declare secondary tax, on which job? Say your first job is going along nicely at 25 hours a week, then things slow down and because your contract says a minimum of 15 hours you have lost 10 hours of work - $100 in you hand is a lot to loose per week.

Now your first job is not your main income and your second job is giving you more work.

However, you are still paying double tax on the hours you work. Is it any surprise there is supposedly so much of this "black economy" - people doing one part-time job and doing something else for cash? It is no wonder that Trade Me is so successful. People need the extra money.

Secondary tax needs to go.


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