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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

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[–] Rangelus 2 points 9 months ago

I do not for a second think the total tax take would fall if the top brackets was raised 10%.

Those that leave the instant they pay more tax often mitigate their tax obligation already. Off-shoring profits is very common, for example.