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National bill will deliver fairness in tax system

23 April 2019

Leader of the Opposition Simon Bridges will this week put a Member’s Bill in the Ballot which will link income tax brackets to inflation, ensuring Kiwi families can keep more of what they earn, restoring fairness to our tax system.

“Over the next three years New Zealanders on the average wage will move into the top tax bracket. I don’t think it’s fair for people on the average wage to pay a third of their income in tax.

“At the start of this year, I pledged that National would campaign on tax indexation, meaning income taxes would be adjusted every three years in line with the cost of living. I’ve drafted this Bill to go into the Ballot now because I believe Kiwis deserve a fairer tax system and they shouldn’t have to wait.

“More red tape and taxes from this Government means New Zealanders’ incomes are struggling to keep up with the rising cost of living. My Bill will ensure that governments are required to adjust tax thresholds for inflation, or explain to the public why not.

“Kiwi households will pay almost $10,000 more over the next four years than they would have under a National-led Government. The Government is taking more than it needs, only to waste billions on bad spending.

“Taxpayers are forking out $2.8 billion for fees-free tertiary which has resulted in fewer students, $3 billion for Shane Jones’ slush fund and $2 billion on KiwiBuild which has resulted in next to no houses.

“If my Bill is drawn from the Ballot and we assume inflation of two per cent, someone on the average wage would be $430 a year better off after the first adjustment, $900 after the second and $1,400 after the third.

“Kiwis would pay $650 million a year less in tax after the first adjustment on today’s estimates, which is affordable if the Government managed the books wisely.

“National believes New Zealanders should keep more of what they earn. We won’t introduce any new taxes in our first terms and we won’t allow future governments to use inflation as an annual tax increase by stealth.”


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