Happy Tax Freedom Day

According to the OECD figures, this year tax freedom day is Monday 22 May, representing the 39.1% of the economy that is spent by the government.

Today, Monday 22 May, is "Tax Freedom Day" - the first day this year that New Zealanders stop working for the Government and begin working for themselves.

According to OECD’s Total Government Outlays statistics, total New Zealand government expenditure is equal to 39.1% of the New Zealand economy. That means, for the average Kiwi, when the clock ticks over to 1:43pm today they finally stop working for the Government and begin to work for ourselves.  For comparison, Australia’s Government is only 36.1% of their economy - meaning its Tax Freedom Day was on 11 May.

As modeled in our report, 5 Options for Tax Relief in 2017, because income tax thresholds have not been adjusted to match growth in average earnings, the average earner now pays $1,350 each year, or $26 each week, more in income tax since 2010. 

We think Tax Freedom Day is a day for New Zealanders to reflect upon how every dollar of the money they've earned 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?

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.

Note: Accounting firm, Staples Rodway, published earlier in the month that Tax Freedom Day was on 8 May.  Their calculations do not factor in public spending funded by borrowing and other revenue means. See our comments at: http://business.scoop.co.nz/2017/05/08/reports-of-tax-freedom-day-premature-2/