Why is National increasing taxes?
Why is National increasing taxes?
Forget Bill English’s tax cut tease: National continues to raise tax by stealth using bracket creep, says ACT Leader David Seymour.
“Inflation and nominal wage growth continue to push taxpayers into higher tax brackets, even when they’re not getting any richer in real terms.
“This bracket creep costs the average earner almost $500 a year, and the figure keeps going up.
“This squares with new data ACT has commissioned from the Parliamentary Library showing bracket creep will have cost taxpayers $2.872 billion between 2011 and 2018. [See attachment]
“This means that when the Prime Minister finally announces tax cuts in May’s budget, it’s more likely to be a ‘tax reset’ than a genuine reduction of the tax rates set in 2010.
“National never campaigned on tax hikes, but they’re happy to reap the fiscal benefits of this theft.
“Only a stronger ACT will make the Government adjust tax thresholds annually to compensate for inflation.”
ENDS