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
I’d like to point out that poor people (mostly) don’t vote for Act, so from their point of view this is better for their voters.
Though I stand by my previous claims that people who vote for Act (largely) do not understand the Act policies, and are just voting for someone who is not Labour or National.
I think enacting policies that only benefit their own voters is sort of a more sophisticated version of that thing that happens in some third world countries where if you vote for them you get a cash payout or a chicken or something.
Haha it pretty much is! My understanding of a center-right viewpoint is basically that people deserve their position in society based on their actions. It makes sense from that view point that a flat tax is fairer.
And let’s be honest here. The majority of right wing voters stand to benefit financially from right wing policies, but also the majority of left wing voters also stand to benefit financially from higher tax rates on the rich. People tend to vote for things that benefit themselves, and I think MMP helps solve that problem by forcing groups to come to compromises.
My personal view is that most people vote for what benefits themselves. Something about a society growing great when the old plant trees under which they will never sit - I like to think we’re closer than 50 years ago but we still have a long way to go.
Edit: I feel like I should add a disclaimer that any of my views are point in time, and they change like the wind 😆
When we look at facts and metrics fairer societies actually benefit everyone in them. For example there was an OECD study that found countries with higher income equality recover more slowly from economic recessions.
I also don’t get why the political right in NZ are content to have 20% of kids in relative poverty because those are our future taxpayers and citizens. We’d prosper better as a nation if everyone had access to skill building, proper brain development, and felt a bond of loyalty with the wider society.
That’s just magical thinking, but all too prevalent.