Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


New Zealand the most heavily taxed country in Asia-Pacific

New Zealand the most heavily taxed country in the Asia-Pacific

“Today’s Half Year Economic and Fiscal Update will confirm that New Zealand remains the most heavily taxed economy in the Asia-Pacific region”, says ACT Leader David Seymour.

“Government takes 32 percent of everything New Zealanders earn, more than its counterparts in Japan, Australia, South Korea and Singapore. This is important because people, ideas, and capital are mobile. If we overtax them, they will go elsewhere, and New Zealand will be poorer as a result.

“Both major parties are responsible for this situation – New Zealand has been the most heavily taxed economy in the region under both National and Labour governments.

Five percent of New Zealand taxpayers currently pay a third of all income tax. That is deeply unfair. It’s wrong that if a person doubles their income from $50,000 to $100,000 their tax bill triples. At 28 percent, our corporate tax rate is well above the OECD average.

“Our tax system sends the message that if someone upskills, works, saves, and invests to earn more, the government will take more of it off them. And if they drag their feet, they'll pay much less tax and be given money for free.

“We need a tax system that is fair, aspirational and competitive. ACT’s flat income tax rate, and company tax rate, of 17.5 per cent is affordable and achievable.

“Under our plan, someone earning twice as much pays twice as much tax. Someone earning half as much pays half as much tax. Taxpayers would pay no more and no less than their fair share.

“The message will be clear: New Zealanders must make a contribution on every dollar, but their money is primarily their own. Government will not take progressively more of their money as a punishment for success.

“A company tax rate of 17.5 per cent will make us one of the most competitive jurisdictions in the world for investment. Reducing company tax by $5 billion a year instead of handing our corporate welfare is one of the most powerful things we could do to boost investment, productivity, and, ultimately, wages.

“For too long, the tax system has been used for political vote buying and social engineering. This is one of the reasons that productivity growth is weak and living standards are lower than they should be.

“ACT's plan would shift New Zealand from being a country where people try to vote themselves rich, to one where working, saving and investing will make them rich.

“ACT's goal is to make New Zealand the most attractive place in the world to work, save and invest. We want economic growth and opportunity for all New Zealanders and having the best tax system is part of achieving that goal.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Chilling The Warm Fuzzies About The US/China Trade Deal

Hold the champagne, folks. This week’s China/US deal is more about a change in tone between the world’s two biggest economies – thank goodness they’re not slapping more tariffs on each other! - than a landmark change in substance. The high walls of US and Chinese tariffs built in recent years will largely remain intact, and few economists are predicting the deal will significantly boost the growth prospects for a slowing US economy. As the New York Times noted this morning, the likes of New Zealand will still face the trade barriers imposed by the Trump administration during the recent rounds of fighting. More>>


PGF Kaikōura $10.88M: Boost In Tourism & Business

The Provincial Growth Fund (PGF) is investing $10.88 million to boost business and tourism opportunities in Kaikōura, Parliamentary Undersecretary for Regional Economic Development, Fletcher Tabuteau announced today. More>>


Whitebaiting: Govt Plans To Protect Announced

With several native whitebait species in decline the Minister of Conservation Eugenie Sage has today released proposals to standardise and improve management of whitebait across New Zealand. More>>


Education: Resource For Schools On Climate Change

New resource for schools to increase awareness and understanding of climate change... More>>


In Effect April: New Regulations For Local Medicinal Cannabis

Minister of Health Dr David Clark says new regulations will allow local cultivation and manufacture of medicinal cannabis products that will potentially help ease the pain of thousands of people. More>>


RNZ: New Year Honours: Sporting Greats Among Knights And Dames

Six new knights and dames, including Silver Ferns coach Dame Noeline Taurua and economist Professor Dame Marilyn Waring, have been created in today's New Year's Honours List. The list of 180 recipients - 91 women and 89 men - leans heavily on awards for community service, arts and the media, health and sport.


Gordon Campbell: On What An Inquiry Might Look Like

Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>






InfoPages News Channels