This afternoon in partnership with Age Concern, Consumer NZ and the Financial Services Council, we launched the 'Fair Tax for Savers' campaign in Wellington.
We're calling on politicians to remove the over-taxation of long term savings, specifically:
the effective tax rate paid on KiwiSaver funds to be the same as the marginal income tax rates KiwiSavers would pay on their other income; and
term deposits to be taxed only on the real interest rate (actual interest rate less the rate of inflation) rather than the nominal interest rate (the actual interest you receive) as the compensation for inflation is not really economic income.
The campaign involves inserting more than 120,000 post cards in print media for readers to complete and send to MPs. The first insertions were made this morning.
Please take a few moments to visit www.fairtaxforsavers.org.nz and email a postcard to your local MP asking for fairer taxes on savings.