less tax on second jobs

We shouldn't tax labour at all. We should tax unearned income.

The reason is the old manual means of filling in tax forms. It was, quite simply, impossible to properly calculate how much tax was owed on a day to day basis for the whole nation. This is no longer true because of computers and the internet although our IRD hasn't been kept up with modern technology.

Once the IRD get the new computer system we'll probably see the end of secondary taxation. I've already heard that they'll be looking at getting rid of provisional taxation.

Hopefully they'll also go back to everyone filling in tax forms every year (electronically of course) rather than having everyone believing that they've paid the correct tax every year when probably haven't.

Anyone on a low income is always penalised by our current financial laws...the tax thresholds are the biggest problem and need to be addressed especially at the low end

That's interesting, Draco. This would indeed be progress. In part the reason for second jobs to be taxed at secondary rate is to prevent as problem for the low earning taxpayer at the end of the financial year, finding they have more tax to pay. This could happen if both their (low-earning) jobs when added together, meant their income put them into a higher marginal tax bracket for some of that income. But it does give that short-term impact of penalising. The system should be advising them they can get a refund at the end of the year, by putting in a return, or better still,, doing it automatically for them.

Now, regarding Nick's comment of not taxing labour, I would ask you Nick how you would correct for failure in the labour market. Labour market failure, which is what we have at the moment, rewards most wage earners inadequately, while a few are rewarded excessively. Without income tax, I know of no way to redress this imbalance. But what is needed (unpopular in the Chicago School economics era) is a genuinely progressive tax system. To do it, though, we must also sort out the problems of avoidance and evasion. This Government has too many friends benefitting from loopholes, to want to clean up the rorts.

If there was a tax break on second jobs, I'd cut down to half time at my current job and get another part-time job, thus significantly reducing my tax burden.

Agree. here is no incentive to work hard in NZ.

Second job tax is ridiculous, if someone has to work 2 jobs they should be allowed to keep all of their second jobs wages to allowed them to survive a little easier.

The title of the discussion is misleading,
There is only one income tax that any individual pays as an individual. As Draco said above. There is a secondary tax employment rate however. But this does not effect your annual taxation rate, and normally results in a good tax refund for many people.