The Labour Party is misleading New Zealand workers by trying to suggest they won’t increase income taxes, National Party Revenue spokesperson Judith Collins says.
“Labour is simply factually wrong – they would force someone on the average wage to pay $1060 a year more in tax,” Ms Collins says.
“Under the current law in New Zealand, passed by Parliament – including with the support of the Greens – the bottom two tax thresholds will increase from April 1 next year.
“That means annual earnings of up to $22,000 will be taxed at 10.5 per cent, and earnings between $22,001 and $52,000 will be taxed at 17.5 per cent.
“These changes were made in response to rising incomes, and go some way to countering the effects of fiscal drag on low and middle income earners, where they otherwise move into higher tax brackets as their income increases.
“In pledging to reverse the current law, there is absolutely no doubt that Labour is seeking to increase income taxes.
“If they were to be elected and proceed with their changes, people on incomes of $52,000 a year or higher will be paying $1060 more income tax per year from 1 April than will currently be the case.
“National doesn’t believe that someone on the median wage should end up with a tax rate of 30 cents in the dollar. Without our approach, that’s what would happen.
“Labour needs to be upfront with New Zealanders. Under Labour income tax is going up.”