Out of touch

There's been some stuff over the last few weeks about how MP's high salaries and extensive perks put them out of touch with normal people. How out of touch are they? Revenue Minister Simon Watts thinks that people with $50,000 invested overseas aren't wealthy:

Inland Revenue figures suggest only tens of thousands of New Zealanders have directly invested more than $50,000 in overseas shares.

But Revenue Minister Simon Watts has rejected the assertion that those whose purchases total less than $100,000 and who stand to gain from a tax change in Budget, could be described as mostly wealthy.

Watts has four houses, three trusts, and a salary of $320,600, plus perks (including $52,000 a year for housing and a tax-free "expense allowance" of $19,000). With all that, I think its fair to say that he has a certain level of wealth, and might not see $50,000 as a big deal, and certainly not real money. But $50,000 is vastly more than most kiwis have - median savings balances are less than a tenth of that, and a third of kiwis don't even have $500. Only 38% have a Kiwisaver balance of more than $40,000, so Watt's "not wealthy" is more than most people's entire lifetime savings.

You'd think as Revenue Minister, Watts might have some acquaintance with these facts. But wealth is something this regime steadfastly refuses to look at, because if it did, it might face pressure to do something about it. So he just falls back on his own reckons as a four-house, three-trust, $300K salary guy. $50K isn't a lot of money to him, so ergo people who have it aren't wealthy.

Which just goes to show that ministers and MPs are in a completely different boat from the rest of us. And that calls into question their claim to be "representatives".