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https://theconversation.com/proving-the-wealthiest-new-zealanders-pay-low-tax-rates-is-a-good-start-now-comes-the-hard-part-204532>
"If nothing else, the just released Inland Revenue study of the tax rates paid
by the wealthiest New Zealanders should put to rest the notion we have a
progressive tax system. We don’t.
A progressive system is one where higher earners pay more as their income
grows. The report, commissioned by Minister of Revenue and Attorney-General
David Parker, has revealed the country’s wealthiest are paying a median
effective tax rate of 9.5% (including GST).
This is less than half the tax paid by middle income earners at 22%, or nearly
30% if you include GST. But while many commentators have asked how such a low
tax rate is possible, the real question should be what happens next?
Will the government change the tax code to include a robust capital gains tax?
In a hotly contested election year, is there much political will to target the
core source of income for New Zealand’s richest people?
Whatever the answers, we should first recognise just how important this report
is. The now decommissioned Tax Working Group, of which I was a member, called
for this study to be completed. It is satisfying to see the country now has
better information on which to base its tax decisions."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
