MEDIA RELEASE

At 1:43pm today Kiwis finally stop working for the government

22 MAY 2017
FOR IMMEDIATE RELEASE

Today is 2017 “Tax Freedom Day”. At 1:43pm the average New Zealanders will stop working for the government and for the first time this year begin working for themselves.

Jordan Williams, Taxpayers’ Union Executive Director, said, "Tax Freedom Day is based on OECD figures showing that general government total outlays are now equivalent to 39.1% of the economy. That means that up until today Kiwis have effectively been working for the Government in 2017."

“As modelled in our report, 5 Options for Tax Relief in 2017, because income tax thresholds have not been adjusted to match growth in average earnings, the average earner now pays $1,350 each year, or $26 each week, more in income tax since 2010.”

Earlier today the Taxpayers’ Union released a “Total Lifetime Tax” paper, showing that the average New Zealand households pays $1.47 million in tax, accounting for 15 years of income its total income. See www.taxpayers.org.nz/lifetime_tax.

Notes:

• According to the OECD Total Government Outlays statistics, this year Tax Freedom Day is Monday 22 May, representing the 39.1% of the economy that is spent by the government.

• For comparison, Australia’s Government is only 36.1% of their economy - meaning its Tax Freedom Day was on 11 May. The United States celebrated Tax Freedom Day on 18 May (38% of its economy).

• Accounting firm, Staples Rodway, published earlier in the month that Tax Freedom Day was on 8 May. Their calculations do not factor in public spending funded by borrowing and other revenue means. See our comments at: http://business.scoop.co.nz/2017/05/08/reports-of-tax-freedom-day-premature-2/.

• More information about Tax Freedom Day is available at http://www.taxpayers.org.nz/tax_freedom_day_2017

ENDS

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