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 Who Decides On The Priority List For Vaccines

During the past week, the nation has gone through a range of mixed feelings about south Auckland. Understandably, there’s been a hankering in some quarters to punish a few of the rule breakers who plunged all of Auckland back into lockdown…Yet alongside that impulse there also been compassion for the way that poverty and overcrowding make south Aucklanders extremely vulnerable to the spread of the virus... More>>


Government: PHARMAC Review Announced

The Government is following through on an election promise to conduct an independent review into PHARMAC, Prime Minister Jacinda Ardern and Health Minister Andrew Little announced today... More>>


Government: Main Benefits To Increase In Line With Wages

All measures of child poverty were trending downwards, prior to the COVID-19 lockdown, across the two years since year ended June 2018, Stats NZ said today. The COVID-19 lockdown in late March 2020 affected Stats NZ’s ability to collect data from households ... More>>

Government: Reserve Bank To Take Account Of Housing In Decision Making

The Reserve Bank is now required to consider the impact on housing when making monetary and financial policy decisions, Grant Robertson announced today. Changes have been made to the Bank’s Monetary Policy Committee’s remit requiring it to take into ... More>>


Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>

The Dig: An Illogical Ideological Struggle

Dig beneath all the trade wars and the arguments to the effect that the USA should not permit China to achieve economic and technological superiority, or even parity, and you find the real reason behind the conflict... More>>




InfoPages News Channels