Surplus shows no excuse for stealth tax hikes

The government’s return to surplus means it can no longer justify relying on bracket creep to inflate revenue, says ACT Leader David Seymour.

“Despite the government’s improving financial status, household tax bills continue to rise as inflation pushes income into higher tax brackets,” said Mr Seymour.

“It’s hard to get excited about possible future tax cuts when any benefit would be offset by ongoing stealth hikes. If the government wants to cut taxes honestly, it needs to permanently tie tax brackets to inflation.
“Bracket creep has cost the average household $1036 since 2010, far more for higher-income families, and the bill keeps rising.

“Bill English even admitted in March that the government relies on this hidden tax increase as a revenue stream, but with surplus finally reached, it’s time he made this tax-by-stealth strategy a thing of the past.

“Ending bracket creep would ease long-term tax pressures on households. Better yet, it would force future governments to make tax changes openly and honestly, instead of simply hoping Kiwis won’t notice the effects of bracket creep tax increases.”

ENDS

© Scoop Media