National will cut taxes for hard-working Kiwis

 

With the right economic policy, we can grow and rebuild our economy from the biggest economic downturn the world has seen since the Second World War.

Our economy needs stimulus to ensure it rebounds quickly from the recession, jobs are saved and households and businesses have confidence.

New Zealand has suffered a second lockdown, worsening fiscal and economic projects and the largest economic contraction in New Zealand’s history.

More than 70,000 New Zealanders have gone on to unemployment benefits since March and Stats NZ estimates a further 185,000 people expect to lose their job in the next year.

It has become clear that immediate fiscal stimulus is needed to boost the New Zealand economy, inject cash and confidence into households and businesses and restore our economic prospects.

The best short term stimulus is to allow New Zealanders to keep more of their money so they can spend it on what they need. The alternative is to tax New Zealanders more and only let the Government spend the money on its pet projects.

The Policy

National will deliver massive tax stimulus for hard working New Zealanders, putting more than $3000 extra in the back pockets of the average New Zealander.

National will increase tax thresholds by lifting the bottom threshold from $14,000 to $20,000, the middle threshold from $48,000 to $64,000 and the top threshold from $70,000 to $90,000.

These changes will be in place from 1 December 2020 to 31 March 2022. More than 2.6 million New Zealanders will benefits from these tax cuts, including more than 1 million New Zealanders who will benefit by more than $2500.