ACT on Honesty for Taxpayers

Jamie Whyte has proposed:

On this policy, regulatory impact statements, cabinet submissions and ministers’ introductory speeches for Bills in parliament will need to state clearly that “but for this proposal, your income tax rate would be X percentage points lower”.

When taxpayers visit the website of any government agency or local council and any programme of that agency, they should have a clear idea of the price of that agency in their taxes or rates.

Government departments and agencies should be required to declare on their home webpage “but for this agency, your income tax rate would be X% lower”.

Similar rules should apply to local governments. They should be required to reveal how much lower rates would be if not for a particular new policy proposal or existing service of the Council.

If a minister, department, agency or local council believes that the programmes it administers do indeed offer value for money to taxpayers, they should be proud to say how they are putting taxes to work in the clearest way taxpayers can understand.

For example, the government should be keen to alert taxpayers that, without Working for Families:

·      the 17.5% income tax rate would be 12.5% OR

·      the 10.5% income tax rate would be 3.5%.

The Minister for Tertiary Education should be keen to remind everyone that, if not for interest-free student loans

·      the 17.5% income tax rate be would 16% OR

·      the 28% company tax would be 25% OR

·      the 33% top income tax rate would be 30%.

That’s a great idea. The public will be able to judge the worth of programmes more effectively, if they know the opportunity cost of the – the reduced taxes they won’t be getting.

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