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Hard-working Kiwi taxpayers deserve indexation too

Today’s announcement that the Government is adjusting superannuation and main benefits for inflation highlights the need for a principled approach to income taxes.

“While those receiving taxpayer support get an adjustment, hard-working New Zealanders are going backwards each and every day,” says Taxpayers’ Union Campaigns Manager, Callum Purves.

“Indexing tax brackets for inflation is a principled policy that would ensure that people only pay more tax if they are actually earning more in real terms.

“Those lucky enough to receive a pay rise in line with inflation still end up worse off as they pay a higher proportion of their income in tax or are rocketed into higher tax brackets.

"After taxes, wages are not keeping up with inflation but the Government continues to ignore the obvious solution of income tax bracket indexation.

“Indexation would mean that, at whatever level income taxes are set, they remain at the same rate in real terms and are not increased by stealth.

"The Taxpayers’ Union is calling on the Government to index tax brackets to make our tax system more honest and shield New Zealanders from the ever-increasing cost of living."

Showing 1 reaction

  • rhys hurley
    published this page in News 2023-03-14 09:14:08 +1300

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