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Tax increases for most taxpayers from ACT

Media statement

For immediate release

Wednesday, June 16, 2004

Tax increases for most taxpayers from ACT

United Future’s revenue spokesman, Gordon Copeland, today claimed that a majority of taxpayers will pay more, rather than less, tax if ACT’s 20% flat tax proposal is adopted.

“According to information released with the Budget, New Zealand has 2.847 million taxpayers.

“Of those, some 500,000 New Zealanders currently pay tax at 15% and a further 1.661 million pay tax at 19.5 cents, i.e. a total of 2,161,000 taxpayers (or 76% of all taxpayers).

“So ACT’s goal of a 20% flat tax rate means more than three-quarters of taxpayers will get a tax increase under ACT’s policies.

“This is hardly a mainstream or credible tax policy,” said Mr Copeland.


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