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.

“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

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Demise Of The Tokyo Olympics

As the Covid vaccines roll out around the world, the Tokyo Olympics are looming as a major test of when (and whether) something akin to global normality can return – to international travel, to global tourism, to professional sport and to mass gatherings of human beings. Currently though, it looks like a forlorn hope that Japan will be able to host the Olympics in late July. Herd immunity on any significant scale seems possible only by December 2021, at the earliest... More>>


New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>


A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>


Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>


Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>





InfoPages News Channels