Tax burden grows under Labour, NZ less competitive

Thu, 09 May, 2019

The tax burden has steadily increased under Labour, making New Zealand a less attractive place to live and work than Australia, according to ACT Leader David Seymour.

“This gap could grow with both major parties in Australia promising tax relief if they win the election.

“Today is Tax Freedom Day, the day on which New Zealand has paid its tax bill and can keep the rest of its income for itself.

“Tax Freedom Day falls five days later this year than in 2017, when Labour took office, because the tax take has grown faster than the economy.

“Tax Freedom Day is also later in New Zealand than in the US and Australia because our tax burden is greater than our competitors.

“We have a highly progressive income tax system in which the top rate is three times the bottom rate.

“At present, 5 per cent of New Zealanders pay a third of income tax and fifty per cent pay just 8 per cent.

“Our corporate tax rate is uncompetitive at 28 per cent, significantly higher than the OECD average of 22 per cent.

“While taxes grow under Labour, National has vowed to effectively maintain the status quo if they return to Government.

“ACT believes New Zealanders should pay low, flat taxes. We need a simple tax system that rewards success and promotes growth.

“New Zealanders who want lower taxes should consider giving their support to ACT.”