WILLINGTON: Grant Robertson will allow new benefits to rise in line with inflation while tax brackets will remain the same, pushing middle income New Zealanders into the highest bracket”, says ACT Leader David Seymour
Mr Seymour has introduced an amendment to the Government’s Families Package Bill which would allow the Minister of Finance to index tax brackets to the rate of inflation, but Labour, the Greens and New Zealand First voted against it.
“ “The ‘Best Start’ payment families will receive through the Government’s legislation will increase with inflation, but the income levels at which various tax brackets take effect will not. That’s another kick in the guts for hardworking New Zealand taxpayers.
In March this year, the parliamentary library estimated the National Government had collected an extra $2.1 billion since its 2010 tax cuts as a result on the non-indexation of tax brackets.
“In effect, the tax cuts National promised to enact if they were re-elected would simply be returning to New Zealanders what was taken from them through bracket creep”, says Mr Seymour.
