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Labour unveils its tax policy

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Labour leader Phil Goff

Labour leader Phil Goff

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Tue, 27 Apr 2010 5:20p.m.

By Rebecca Wright

Labour has announced details of its tax policy, following questions on TV3's The Nation last weekend.

It says it would restore the top tax rate to 38 cents in the dollar but the threshold would be higher - at least $100,000 a year.

Kiwis earning over $70,000 dollars a year are expected to be in for a tax cut in next month's budget - but the leader of the opposition says his party would reverse a reduction from 38 to 33 cents in the dollar and tinker with the thresholds if elected.

“We would be looking at a rate of taxation that's not much different to the 38 cents in the dollar as the top rate but increasing the threshold so you didn't get to that level until you were earning very high incomes,” says Labour leader Phil Goff.

Today Mr Goff told reporters Labour would return the top tax rate to 38 cents but it would also raise the income threshold where the top rate kicks in.

“It certainly wouldn't be left at $70,000 - it would be in six figures,” says Mr Goff.

Raising the income threshold would mean effectively taxing the top five percent of earners at the highest rate.  

  • 88 percent of kiwis earn under $70,000 a year.
  • 6.8 percent earn between 70 and $100,000
  • 5.1 percent earn over a $100,000 a year.

Finance Minister Bill English wouldn't be moved on whether raising thresholds is part of the Government's package and he wasn't biting on Labour's policy.

“Its just the same old Labour party coming back - put up taxes, spend more, borrow a lot and hope people vote for you,” says Mr English.

Labours policy appears to have rapidly taken shape since Mr Goff was drawn on the party's tax plan over the weekend. 

3 News understands there has been rigorous debate on the issue behind the scenes but taxing the rich is standard policy for the party and with 95 percent of Kiwis earning under $100,000 a year - it’s an obvious one for the party to pursue.  

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Comments [11]

Clarke
26 Jan 2011 11:57a.m.

Grant pull your head in, National is also a socialist policy so using the word for dramatic effect just looks idiotic.

Labour rewards community Grant which leads to decreased crime, National increases the crime rate each and every time it is in power.

National only favours the rich and only the rich have tirades like you, however nothing much of what you said is actually true.

You just happen to think that by posting it, some poor saps will believe you and you can keep National in power and they can keep increasing the gap between rich and poor.

Just how much was it that you earnt per year again Grant?.

And seriously... each and everytime you refer to labour as a socialist party you forget that so is National.

It doesnt help your cause when you dont seem intelligent enough to realise socialists are what our two main political parties are.

And not just labour you idiot.

Alex
18 May 2010 9:48a.m.

Lightseed do you ever get tired of being wrong?

Grant
12 May 2010 4:48p.m.

Paul why are U shouting ? - calm down before U have a stroke. Remember it was Labours mismanagement that let NZ slid down the OECD ladder. Labour does not reward success and self improvement - they continue with there socialist mantra and benefit for all mentality which is why we are paying big time now for our dept.
You do sound bitter and twisted. Lie down and get some sleep.

paul
30 Apr 2010 10:16p.m.

have no fear once the national partys policys realy begin to bite PEOPLE WONT CARE IF THE HIGHEST INCOME EARNERS PAY THEIR FAIR SHARE . WARREN BUFFET THE AMERICAN TYCOON SAID HIS SECRETARY PAYS MORE IN TAX PER DOLLER THAN HE DOES , MR BUFFET HAS PUT UP A SIZABLE SUM FOR ANYONE TO COME FORWARD AND DISPROVE THE STATEMENT so far no body has . THE TORIES AND THE GREEDYS, LIKE THESE GOVT MINISTERS RECENTLY COUGHT WITH THEIR FINGERS IN THE TILL LIVING IT UP LARGE ON YOUR MONEY ILEGALY , THEN CONDEM ANOTHER SECTOR LIKE THE GOOD POOR HARD WORKING FAMILYS ON A LOW WAGE . AND THESE HYPOCRITS DODGE TAX IE STEAL FROM THE TAX PAYER , YOU AND I PAY FOR THAT . YOU GOTTA BE KIDDEN AS SOON AS KEY AND HIS AND HIS TORIE HYPOCRITS ARE OUT THE BETTER . BYE THE WAY ENGLISH BUDGET WILL CONSTRICT THE ECONOMY , HES REDUCEING THE MONEY IN CERCULATION YOU NUMBSKULLS , IT HAS TO CONSTRICT THE ECONOMY , THE LAWS OF ECONOMICS HAVENT CHANGED.WELL YOU ALL GOT BRAINWASHED INTO VOTEING FOR KEY BYE OUR BROUGHT AND PAID FOR MEDIA . DARE YA TO POST THIS .

Alex
30 Apr 2010 8:09a.m.

Tax all income at over $500k at 100%, confiscate all estates worth over $10 million.

Ricardo
28 Apr 2010 2:21p.m.

Do not forget. It was the new Labour government that destroyed all incentive for the masses by introducing the original draconian tax levels....and you all think it's great for them to do it again?? Are you serious? Get off your bums, get educated and aspire to be something rather than the dregs of the previous 'hand out' labour voters, many of whom have now seen the light and no longer wish to crucify success.

Dan
28 Apr 2010 12:46p.m.

@Lightseed: Yes pray enlighten us as to what measures have been put into place by National that will enforce payment of taxes by the rich/wealthy?

Kim
28 Apr 2010 12:21p.m.

@lightseed
Maybe you could enlighten us as to the changes national have made that force rich people to pay taxes? Because i haven't seen any yet.

Lightseed
28 Apr 2010 11:36a.m.

clifford, most wealthy people will start paying tax under national. Under labour so many loop holes existed in tax that they could get away without paying much tax. The govts main intake has been from middle class people as wealthy people under labour escaped paying tax.

Clifford
28 Apr 2010 11:15a.m.

Not that it will make alot of difference.. those at the top always find loopholes.. whether its investment properties, tax loopholes such as family trusts and ripping off the working for families package.

Those at the time have invested alot of money in finding ways to screw the system... so when National gives them a tax break.. is that going to stop? if you believe it will then you have never seen the greed of a rich person.

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