Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Tax Increase Punitive, Distortionary And Stale

“Finally released detail of Labour’s proposed tax increases shows officials don’t think it will work, describing revenue estimates as ‘highly uncertain,’” says ACT Leader David Seymour.

“It’s also no surprise the Government has signalled it will increase the rate it taxes trusts to 39 per cent if it finds people are finding ways to avoid the new 39 per cent income tax rate.

“Unintended consequences of tax changes nearly always outnumber intended consequences. We know from history that over time this will result in fewer highly-skilled people wanting to come here, and more highly skilled people wanting to leave for more attractive jurisdictions.

“It’s also clear the way Labour is changing the law will deliver a huge blow to the integrity of the tax system.

“The percentage of income collected compared with the percentage of rates levied will get worse, which means more avoidance activity, a leakier tax system, and more time running round on expensive administration and compliance.

“But perhaps the greatest tragedy of raising income tax rates might well be the message it sends all New Zealanders who strive to get ahead.

“Punishing success is the very opposite of what we try so hard to instil in our young people as they develop through school, go on to further study and enter the workforce.

“We hope this positive environment spurs all our young people to do their best.

“But if they do that under a supposedly kind and caring Labour Government their reward will be a special tax rate of 39c in the dollar if they earn over $180,000, to punish them for doing too well.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“This is a Government that says it wants to develop a higher wage economy, but then disincentivises earning.

“What’s worse, this is the reintroduction of the same unimaginative, punitive and divisive tax policy Labour ushered in under then Finance Minister Michael Cullen 21 years ago.

“This tall poppy syndrome in the tax code is the antithesis of the culture we should be fostering in New Zealand.”

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.