Labour says it would raise the top personal tax rate 3
cents to 36 cents in the dollar in a shake-up of the tax
Its changes would also a crackdown on tax avoidance by
As revealed by the Herald this morning, Labour says it would
raise as much as $200 million a year in additional revenue by
tackling tax avoidance by big international companies.
However, Labour Leader David Cunliffe today said Labour's
fiscal plan would see a Government he led build "strong and
sound fiscal foundations" by posting surpluses every year and
paying off the National Government's "record debt" by the end
of its second term.
He said Labour's spending would be "restrained" but revenue
would be boosted by tax measures including a capital gains
However, by raising the top personal tax rate to 36c for
those earning $150,000 a year or more, Labour would raise
almost $200 million in the 2015-16 year, rising to $350
million a year by 2020-21.
By aligning the tax rate for trusts with the new top tax
rate, the use of trusts to avoid tax would be minimised and
again, a further $200 million a year in revenue would flow
into Crown coffers, rising to $336 million by 2020-21.
Mr Cunliffe said the tax hikes would mean wealthier New
Zealanders were being asked to "return a small part of the
very large tax cuts they received from the current
Labour estimated the tax hike would affect 2 per cent of tax
payers who earned on average $260,000 a year.
They had received tax cuts at a time New Zealand could not
afford it and National had engaged in "unnecessary borrowing"
to pay for them
- By Adam Bennett of the New Zealand Herald