A new Taxpayers’ Union — Curia poll has revealed that New Zealanders – at a ratio of five to one – support inflation adjustment of income tax brackets. 67% of respondents supported inflation adjustments while just 13% were opposed. The remainder were unsure.

There was majority support across every demographic (gender, age, area, economic status, and preferred political party) with the exception of Te Pāti Māori voters, where there was still a plurality of support.

Voters were asked: “As welfare benefits automatically increase with inflation, would you support or oppose a law so that income tax thresholds also adjust for inflation, so that someone whose income increases in line with inflation doesn’t end up paying proportionally more income tax than previously?”

The full polling report can be found here.

Commenting on the poll, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:
“Despite stagnant real wages, bracket creep is dragging New Zealanders into higher and higher tax brackets. This inflation tax reaches deeper into working Kiwis’ pockets, doubling down on the impact inflation is already having on the cost of living.

“With indexation supported by a majority across all demographics, it’s evident that it’s only politicians standing in the way of common-sense tax reform.

“While benefits, student loan living costs, and superannuation are adjusted for inflation – along with many other taxes that bolster the government coffers – politicians are far less inclined to take the same approach if it means putting an end to the inflation-driven gravy train.”

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