Say NO to these tax cuts in return for meaningful inflation indexed tax brackets
Say NO to these tax cuts in return for meaningful inflation indexed tax brackets
The issue
New Zealanders are all affected by our current governments drive to deliver the promised tax cuts.
Since 2010 despite that the Reserve Bank Inflation calculator shows you need to earn $1.37 to match a 2010 dollar the tax brackets have not matched inflation. The tax take improved with inflation because a pay-rise meant you moved up to higher tax brackets faster.
Background
In 2009, in response to the effects of the Global Financial Crisis, the National Government announced that it was deferring the scheduled income tax threshold and rate changes planned from 1 April 2010 and 2011, “to avoid further increasing debt”. It was estimated that the Government saved around $900 million a year from 2011/12 by deferring the second and third phases of the tax cuts. In a May 2009 media release, Hon Bill English commented that, “Tax cuts will be assessed to consider whether they are affordable, as part of future budget processes.”
This Government promised meaningful tax cuts and a real impact on the quality of the lives of the squeezed middle BUT maybe the sacrifices be just too great. Government spending is being slashed to deliver tax cuts.
Increased population caused increased costs and staffing to government agencies and departments. Now government departments, agencies, community services and charities are now required to cut costs to help deliver tax cuts. Staffing the easy target is first adding a new level of trauma and further reduce consumer and business confidence.
Why should so many give up so much for so very little to eventually arrive at the squeezed middle.
Let's ask this government not to give a one time tax cut.
Ask them to solve the real problem. Tax brackets have not been increased since 2010. Instead link the tax brackets to inflation. Accept inflation is only partly solvable. W
The tax take should remain proportionally the same if tax brackets were linked to inflation and potentially more predictable.
If inflation indexing can be done for NZ Super surely a similar formula can be used for tax brackets.
Stand up be counted!
Say No to Tax Cuts in return for Inflation indexed tax brackets
19
The issue
New Zealanders are all affected by our current governments drive to deliver the promised tax cuts.
Since 2010 despite that the Reserve Bank Inflation calculator shows you need to earn $1.37 to match a 2010 dollar the tax brackets have not matched inflation. The tax take improved with inflation because a pay-rise meant you moved up to higher tax brackets faster.
Background
In 2009, in response to the effects of the Global Financial Crisis, the National Government announced that it was deferring the scheduled income tax threshold and rate changes planned from 1 April 2010 and 2011, “to avoid further increasing debt”. It was estimated that the Government saved around $900 million a year from 2011/12 by deferring the second and third phases of the tax cuts. In a May 2009 media release, Hon Bill English commented that, “Tax cuts will be assessed to consider whether they are affordable, as part of future budget processes.”
This Government promised meaningful tax cuts and a real impact on the quality of the lives of the squeezed middle BUT maybe the sacrifices be just too great. Government spending is being slashed to deliver tax cuts.
Increased population caused increased costs and staffing to government agencies and departments. Now government departments, agencies, community services and charities are now required to cut costs to help deliver tax cuts. Staffing the easy target is first adding a new level of trauma and further reduce consumer and business confidence.
Why should so many give up so much for so very little to eventually arrive at the squeezed middle.
Let's ask this government not to give a one time tax cut.
Ask them to solve the real problem. Tax brackets have not been increased since 2010. Instead link the tax brackets to inflation. Accept inflation is only partly solvable. W
The tax take should remain proportionally the same if tax brackets were linked to inflation and potentially more predictable.
If inflation indexing can be done for NZ Super surely a similar formula can be used for tax brackets.
Stand up be counted!
Say No to Tax Cuts in return for Inflation indexed tax brackets
19
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Petition created on 9 May 2024