Andrew Little does U-turn on fiscal drag tax bracket adjustments
11 July 2017
FOR IMMEDIATE RELEASE
The Taxpayers’ Union is slamming the Labour Party’s indication that if elected in September it would quash the Budget 2017 tax relief package, due to come into effect in April next year, and instead raise Working for Families and introduce new winter payments.
“It’s a fool's paradise,” said Jordan Williams, spokesperson for the Taxpayers’ Union. “Since 2010, inflation and wage growth sees the average earner pay $26.17 more per week in tax because income tax thresholds haven’t been adjusted. The National Party’s tax adjustments don't even make up tfor hat amount. Now Labour says it wants to put a halt to them.”
“This is a classic tax and churn policy. Rather than allow low and middle-income families keep more of what they earn, politicians want to tax it, bureaucratise it, then give back what is left.”
“This is also a U-turn from Andrew Little. Back in March Mr Little told The Nation that tax thresholds should change periodically to keep up with average wage growth. Now Mr Little is turning his back on adjustments that don’t even make up for the fiscal drag costs under the current Government.”
The effects of fiscal drag are modelled across various incomes in the Taxpayers’ Union report, 5 Options for Tax Relief in 2017, available at www.taxpayers.org.nz/5_options.
The transcript of The Nation interview is available here.