Tax Freedom Day 2016
This year Budget Day falls on "Tax Freedom Day" - the first day that New Zealanders stop working for the Government and begin working for themselves.
According to OECD figures general government total outlays now equal 40.0% of the New Zealand economy. That means, for the average Kiwi, when the clock ticks over to 11:12am Thursday we finally stop working for the Government and begin to work for ourselves.
Despite the election of a National-led Government in 2008, the burden of government is still higher now than it was under Helen Clark. During the period of the last Labour Government the size of government never rose above 40% of the economy.
New Zealand’s 2016 Tax Freedom Day is 15 days later than Australia, and three days later than Canada.
We think Tax Freedom Day is a day for New Zealanders to reflect upon how every dollar of the money they've earn so far this year is taken by politicians and whether all of the spending is really necessary. Are politicians as prudent with your money as they should be?
Thanks to income tax thresholds not adjusting for inflation the average Kiwi household now pays more than $1,000 more in taxes than they did in 2010. While John Key campaigns on a platform of lower taxes, the numbers don't match the rhetoric.
Here at the Taxpayers' Union our mission is to fight government waste and for lower taxes. If you agree that Tax Freedom Day should be earlier in the year - click here to support our campaign.