The Taxpayers Union has released:
The Government’s failure to index tax brackets to inflation since 2010 now costs the average Kiwi income earner almost $500 each year according to a new report released today by the Taxpayers’ Union. The report, “5 Options for Tax Relief in 2017”, models five options to deliver meaningful tax relief packages which could be part of Budget 2017 with fiscal implications of $3 billion or less.
With Labour now saying they will keep spending under 30% of GDP also, they should also be supporting tax cuts for hard working New Zealanders.
The five costed options are:
- A tax free threshold for the first $13,000 of income
- Eliminate the 30% tax bracket, so the 17.5% rate applies from $24k to $70k
- Eliminate the top tax bracket so top tax rate of 26% applies to all income over $48k
- Increase all tax brackets so bottom is up to $25k, second bottom from $25k to $64k, third from $64k to $100k and top above $100k
- Cut company tax rate to from 28% to 13%
The report looks at the pros and cons of each option, and the impact it would have on four typical families or taxpayers:
- Average worker earning $57,000
- Family with two children on $100,000
- Low income worker on $35,000
- Professional earning $120,000
The report also calls for tax brackets to be indexed against inflation.