Some interesting “Wealth Tax” ideas in there and proposed changes that would net an extra ~$5B (estimated).
- Big corporations tax: The corporate tax rate will be increased from 28 percent to 33 percent for big companies with annual turnover exceeding $30 million. This will impact about 0.7 percent of businesses (e.g. banks, supermarkets and energy companies).
And new income tax rates:
Current
| Income band | Tax rate |
|---|---|
| 0 - $15,600 | 10.5% |
| $15,601 - $53,500 | 17.5% |
| $53,501 - $78,100 | 30% |
| $78,101 - $180,000 | 33% |
| $180,001 and over | 39% |
Proposed
| Income band | Proposed rate |
|---|---|
| $0–$9,999 | 0% |
| $10,000–$19,999 | 10% |
| $20,000–$39,999 | 17.5% |
| $40,000–$59,999 | 25.5% |
| $60,000–$79,999 | 30.5% |
| $80,000–$159,999 | 33.5% |
| $160,000+ | 45% |
| – |
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Given the way things are looking. This is probably going to be the best policy announcement of the entire season.
Why aren’t they pushing the numbers more? A tax cut for most, and an additional 5bn in tax take sounds like a win. Yet it’s buried at the end of a PDF.
Huge increase in complexity to achieve this.
Not really, if one can handle five tax brackets then one can handle seven.
If one has built or bought a shitty payroll tool, then that’s one’s problem and no one else’s.
It isn’t just the 7 tax brackets, that isn’t that hard to deal with.
It is the complexity with valuing a bunch of stiff to calculate tax on.
The inheritance tax isn’t a bad idea, we are an outlier internationally WRT to this.
Ah, good point.
Though for the most part I suspect a flowchart from IRD is probably all most people would need.
There are a few things to like here. I would rather the number were a little more clear.
I would rather see the total tax take; not just the differences. Where thy say “tax setting changes -$2,335M” I would like to know is that 10% less or 2%; so I could compare it to the proposed tax increase from the other sources they are expecting.
From budget 24/25 contributions from individual tax were $62.2B; which gives us a better understanding of how these numbers stack up.
So individuals will collectively get about a 3.75% tax cut; weighted to the lowest income earners.
Corporate tax was $18.2B which if I’m reading their policy correctly, will increase to $20.15B. Which is about a 10% increase.
New taxes and restoring landlord taxes will gain an additional $5.37B.
So for the entire $136B crown revenue the increase is ~4%.
As an Opportunity supporter I have to contrast it with their policy to see how it stacks up:
Opportunity Green Headline thing Citizens Income Tax super rich Tax Brackets 3 7 Wealth tax type Land Value Tax Valuation based system Net tax difference +$4.1B +$5.3B Complexity (admin cost) Reduced Increased Ave wage comp ~$68k +$6,651/yr (with $300k land) +$577/yr Ave wage comp ~$68k +$11,901/yr (renter) +$577/yr Yeah, TOP really have this figured out. I’m planning to vote for either them or Labour.
The Green party just have too much baggage to be taken seriously.
Opportunity are running a party vote campaign. So vote opp for party and labour for candidate… Get the best of both world’s.
That’s definitely my plan. I’m in Remutaka electorate, which Hipkins is all but guaranteed to win.
