The Front Page $1.7bn 'stealth' tax: The extra tax you've been paying
Feb 1, 2019
20:26
Wage and salary earners paid out $1.7bn in what's been called "stealth" tax last year. According to advice to the Tax Working Group, it was after inflation increases pushed workers and their pay packets into higher tax brackets. Officials have warned the public could see the money as having come through a stealth tax and Government may want to change it as a "value judgement".
They've also said if the Government did change tax rates, it would increase transparency and account for inflation but money would need to be found to pay for public services.
The extra tax was scooped up after the former government left tax brackets largely unchanged during its time in office, with the highest tax bracket fixed to kick in at $70,000.
Since 2008, inflation combined with pay rises has doubled the number of workers paying the full 33 per cent tax rate on earnings over $70,000. Those in the highest tax bracket increased in 10 years from 335,000 people to 665,000 people. In some countries, tax brackets are automatically tied to inflation, but in New Zealand they are not.
Also today, disappointment from the CTV families on learning the building designer Alan Reay is appealing a court ruling, and new data suggesting NZ might not need to build as many houses as we thought.
They've also said if the Government did change tax rates, it would increase transparency and account for inflation but money would need to be found to pay for public services.
The extra tax was scooped up after the former government left tax brackets largely unchanged during its time in office, with the highest tax bracket fixed to kick in at $70,000.
Since 2008, inflation combined with pay rises has doubled the number of workers paying the full 33 per cent tax rate on earnings over $70,000. Those in the highest tax bracket increased in 10 years from 335,000 people to 665,000 people. In some countries, tax brackets are automatically tied to inflation, but in New Zealand they are not.
Also today, disappointment from the CTV families on learning the building designer Alan Reay is appealing a court ruling, and new data suggesting NZ might not need to build as many houses as we thought.
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