NEW REPORT: The Myth of Rising Income Inequality

A new Taxpayers’ Union briefing paper released today finds claims that income inequality in New Zealand is worsening simply do not match the evidence.

Based on work by Treasury officials on income distribution from 2007 to 2023, The Myth of Rising Income Inequalityfinds inequality peaked around 2012–13 and has since fallen, leaving it lower in 2023 than at the start of the period.

Taxpayers’ Union spokesman Austin Ellingham-Banks says the findings undermine calls for higher income taxes justified on the basis of rising inequality.

“The narrative that inequality is spiralling out of control simply isn’t supported by the data. Analysts at Treasury show inequality peaked more than a decade ago and has since fallen.”

“Raising income taxes would impose economic costs without solving the real issues facing New Zealanders. Kiwis are struggling because of weak economic growth and the cost-of-living crisis. Hiking income tax won’t fix that; pro-growth policies will.”

The full report, The Myth of Rising Income Inequality, is available here.