Debate on Budget Policy Statement

Delivered by ACT Leader David Seymour. 11 March, 2015
Video of the speech can be viewed here.

Free Press 23/03/2015

Stealth Taxes in the Spotlight
It’s been five long years since National’s tax cuts, and it feels like the taxman’s grip is tightening. There’s a reason: bracket creep. Inflation means our earnings go up on paper, pushing us into higher tax brackets whether we have any real increase in spending power or not. ACT Leader David Seymour has revealed research showing an extra $1036 has been taken per average household through bracket creep since 2010. We think that if the government wants to tax us more, it should do so openly. Indexing tax brackets to inflation would end stealth tax increases.

Time to end stealth tax increases

ACT Leader David Seymour has today called for an end to the stealth increase of tax rates through bracket creep.

“Each year, inflation pushes a larger proportion of New Zealanders’ incomes into higher tax brackets, regardless of whether they’ve had an increase in real earnings,” said Mr Seymour.

“Tax brackets should be adjusted for inflation.

“Even with low inflation this stealth tax of ‘bracket creep’ means that the average household is $1036 worse off since the tax changes of October 2010. An individual taxpayer on the average income is $648 worse off.

Time to cap rate rises in Northland and beyond

Massive rate increases will not happen anywhere under ACT, said Northland candidate Robin Grieve today.

Grieve was responding to the announcement by the Whangarei District Council that ratepayers could face increases of over 9% for one year and further ongoing increases of 2% above inflation, as reported in the Northern Advocate

"These increases are outrageous. The power to levy rates is an extraordinary power we give to councils and it must not be abused," said Mr Grieve.

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