NEW POLL: Strong support for inflation adjustment of tax brackets to end the stealth tax

NEW POLL: Strong support for inflation adjustment of tax brackets to end the stealth tax

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.”

NOTES TO EDITORS:
The scientific poll was conducted by Curia Market Research and commissioned by the New Zealand Taxpayers’ Union. As is well known, but for full disclosure, David Farrar co-founded the Taxpayers' Union and previously served on its board. He is also a Director of Curia Market Research Ltd.
 
The Taxpayers’ Union – Curia Poll was conducted from Tuesday 02 April to Thursday 04 April 2024. The median response was collected on Wednesday 3 April 2024. The sample size was 1,000 eligible New Zealand voters: 800 by phone and 200 by online panel. The sample selection for the phone panel is from those who are contactable on a landline or mobile phone selected at random from 15,000 nationwide phone numbers plus a random selection from an online panel (that complies with ESOMAR guidelines for online research). The results are weighted to reflect the overall voting adult population in terms of gender, age, and area. Based on this sample of 1,000 respondents, the maximum sampling error (for a result of 50%) is +/- 3.1%, at the 95% confidence level. Results for sub-groups such as age and area will have a much higher margin of error and not seen as precise.