David Seymour is on a mission to convince his coalition partners to revamp the tax system at this year's Budget.

National campaigned on a proposal to adjust the existing tax thresholds, but as part of coalition negotiations with ACT last year, it agreed to consider whether the “concepts” of ACT’s tax policy could be incorporated “subject to no earner being worse off than they would be under National’s plan”.

In simple terms, ACT would immediately axe the lowest tax threshold of 10.5 percent, meaning the government would collect more revenue from all income earners.

Some of that extra revenue would then be returned to low-and-middle income earners through a targeted tax credit to ensure they were not worse off.

The money left over would allow the government to reduce the higher tax rates at the top of the income scale - dropping the 33 percent rate to 30, and the 39 percent rate to 33

  • DaveOPMA
    7·
    9 months ago

    I also found this interesting:

    Willis would not elaborate on what elements of ACT’s income tax policy were on the table, but she ruled out reducing the 39 percent top tax rate.

    I was sure that getting rid of that $180k+ bracket would be first on the agenda. Turns out I was wrong.

    • Viper_NZ
      5·
      9 months ago

      The first mistake is believing anything she says.