Budget 2024: Government promises to hike taxes by stealth

Budget 2024: Government promises to hike taxes by stealth

The Taxpayers’ Union is condemning the Government for failing to introduce ongoing annual adjustments to income tax brackets for inflation and calling out the hypocrisy of Nicola Willis using fiscal drag to get back to surplus, after complaining about the same in opposition.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Not only is the Government shortchanging New Zealanders by failing to fully unwind inflation-caused tax hikes since 2010, but the Treasury forecasts show that Ms Willis’ tax take will continue to balloon.

“The impact on the average worker since 2010 is devastating – amounting to an additional $49 a week in tax. Today’s tax reduction is only a partial catch up but without tackling the cause of the problem, Nicola Willis is able to stealthily claw back another $1900 per household by 2028 through fiscal drag.