Labor has no excuse to reject National’s weak tax reset
Responding to the National Party’s proposal to adjust income tax brackets for the last four years of inflation, New Zealand Taxpayers Union spokesperson Louis Houlbrooke says:
“This small adjustment to tax brackets is more of a ‘tax reset’ than a true tax cut. And even as a tax reset, it’s a weak one. A more substantial reset would update tax brackets. taxation to offset inflation for the entire decade since the brackets were originally set, not just the last four years.”
“It is particularly concerning to see Christopher Luxon implicitly accepting Labour’s new 39% tax bracket. No one should have to pay such a high marginal tax rate. It discourages workers from upskilling themselves and being more ambitious and productive.”
“We can only hope this is a tentative proposal with more substantial tax reform policies in the works for the election. Otherwise, National will cement its status as a party that does not want to roll back the creeping socialism of the work.”
“The political merit of Christopher Luxon’s proposal is that it is so modest that even a Labor government has no excuse to reject it. government. If Grant Robertson cannot accept such a small measure of tax relief during a cost-of-living crisis, he will expose himself as the ultimate scrooge.”
The Taxpayers’ Union will soon publish a briefing paper explaining how the government could significantly change tax brackets to counter the effects of inflation since 2011.
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