National is committed to helping kiwis keep more of what they deserve and has proposed new laws that end tax hikes through stealth, said Simon Bridges, MP for Tauranga.
Mr Bridges’ draft amendment to income tax (adjustment of taxable income ranges), which emerged today from the member’s vote, provides that the tax thresholds must be adjusted every three years according to the cost of living. This means that within one year of each election, the Treasury Department will notify the government of how much the thresholds should be adjusted for inflation.
“This will discourage New Zealanders from moving to higher tax brackets, even if their income does not keep pace with the rising cost of living. Ending inflation is an annual tax hike through stealth.
“New Zealanders will be able to keep more of what they deserve and help them control the rising costs of necessities like gas, rent and electricity.
“The tax working group advised the government that one bracket creep could result in a stealth tax increase of up to $ 1.7 billion in any given year. The government takes more than it needs to just to waste billions on bad spending.
If that changes, that change will make a real difference, says Bridges.
“It will mean that Kiwis will be able to keep more of their own money in their own bank accounts,” says Bridges.
“This change in the law shows how committed National is to helping New Zealanders get ahead.
“There is widespread agreement that Bracket Creep is a hidden tax hike for hard-working New Zealanders, and I urge Treasury Secretary Grant Robertson to stop clandestinely taxing kiwis and wholeheartedly support this change in the law at all stages.”
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