NZ Politics

564 readers

1 users here now

Kia ora and welcome to the NZ Politics community!

This is a place for respectful discussions about everything that's political and kiwi

This is an inclusive space where diverse opinions are valued, but please don't be a dick

Other kiwi communities here

Banner image by Tom Ackroyd, CC-BY-SA

founded 1 year ago

MODERATORS

Dave

RaoulDuke

ACT leader David Seymour says simpler tax system would encourage a culture of success (www.rnz.co.nz)

submitted 10 months ago by Dave to c/politics

32 comments fedilink hide all child comments

National campaigned on a proposal to adjust the existing tax thresholds, but as part of coalition negotiations with ACT last year, it agreed to consider whether the "concepts" of ACT's tax policy could be incorporated "subject to no earner being worse off than they would be under National's plan".

In simple terms, ACT would immediately axe the lowest tax threshold of 10.5 percent, meaning the government would collect more revenue from all income earners.

Some of that extra revenue would then be returned to low-and-middle income earners through a targeted tax credit to ensure they were not worse off.

The money left over would allow the government to reduce the higher tax rates at the top of the income scale - dropping the 33 percent rate to 30, and the 39 percent rate to 33

you are viewing a single comment's thread
view the rest of the comments

[–] pkboi@venera.social 4 points 10 months ago

@flambonkscious @Dave That's back to front and complicated. The Australian rates where people don't pay tax on the first $14-15k or so is much simpler and much more use to people on low incomes. Reducing GST back to 12.5% would also help low-income earners a lot, too. Much less complicated than a rebate or tax credit.