A new report from the OECD has found that New Zealanders have the second-lowest total tax burden among the 30 richest countries in the world. New Zealand’s “tax wedge” (the difference between one’s pay and how much one takes home) was half the OECD average; only Mexico was lower.
Among the differences with other OECD nations was that many had compulsory superannuation and social security taxes on top of income taxes. So, while other countries may have lower tax rates, New Zealanders’ tax burden is lower.
The National Party, currently leading the New Zealand Government, constantly goes on and on about what’s called the “headline tax rate,” which looks merely at rates. But when the tax wedge is taken into account, New Zealand taxpayers have it far better than do Australians—despite National Party propaganda.
As Green Party Co-leader Russel Norman put it, "With the second lowest tax wedge in the OECD, it is hard to justify borrowing to pay for tax cuts at the top."
So: Why, exactly, does National plan to borrow money to fund tax cuts for the rich? Why does National plan on raising GST, which will impact poor and working people the hardest? Why doesn’t National tell the truth?
They’ll have a hard time lying their way out of this one, but they’ll certainly try. Hopefully, they won’t get away with it anymore.
The five countries with the highest tax burden: Belgium (55.2%), Hungary (53.4%), Germany (50.9%), France (49.2%) and Austria (47.9
The five countries with the lowest tax burden: Iceland (28.3%), Australia (26.7%), South Korea (19.7%), New Zealand (18.4%) and Mexico (15.3%).
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