MEDIA RELEASE

WTF: Even VUW are calling for tax cuts

22 MAY 2017
FOR IMMEDIATE RELEASE

Professor Norman Gemmell, Chair in Public Finance at Victoria University of Wellington, has today called on Steven Joyce to simplify income taxes and provide tax relief. Hear hear, says the Taxpayers Union.

Professor Gemmell has called on Mr Joyce to lower the bottom rate to 10 percent, and adjust tax rates to 15, 25 and 33 percent on incomes above $15,000, $40,000 and $80,000 respectively.

Jordan Williams, Executive Director of the Taxpayers Union’, says, “It's great to see that even VUW academics are throwing their support behind our arguments for tax relief. Too often New Zealand's universities are ideologically opposed to any reduction in the size and scope of government.”

“We welcome the suggestion by Professor Gemmell to index tax thresholds to inflation. Our report, ‘5 Options for Tax Relief in 2017’, estimated the average New Zealander loses $483 a year because of fiscal drag since 2010.

Footnotes:
While the Taxpayers’ Union welcomes Professor Gemmell’s support for tax relief, it appears he may have underestimated that his proposal will only cost the Government $1.9 million a year in revenue. Our estimate is $1.9 billion.

The Taxpayers' Union report, "5 Options for Tax Relief in 2017" is available for download at www.taxpayers.org.nz/5_options.

ENDS

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