Alliance Party Calls for Tax Reforms
November 25, 2011 New Zealand Taxation
The Alliance Party is attempting to woo New Zealand voters, with a promise of tax reforms and greater equality.
With only days to go to the national General Election the Alliance Party is pushing for voter support with a radical overhaul to the country’s taxation system, saying that its planned changes would create higher living standards in New Zealand.
The Alliance Party proposes an overhaul to the treatment personal income taxes. Under the party’s rules all incomes below NZD 10 000 would be exempt from personal income taxes, with the rules even applying to those receiving superannuation payments and the benefit. Incomes between NZD 10 001 and NZD 48 000 would be levied with a rate of 17.5 percent, while those between NZD 48 001 and 70 000 would see a tax of 30 percent. High income earners receiving between NZD 70 000 and NZD 100 000 will be taxed at 40 percent, and those earning up to NZD 200 000 will see 50 percent on their marginal income, and anyone earning any higher amounts facing a rate of 60 percent.
The national Goods and Service Tax would be eventually removed, and replaced with a Financial Transaction tax (FTT). The new FTT will be charged at a rate of 2 percent per NZD 100 withdrawn, but will not be applied to deposits.
The policies are intended to work in unison to raise the living standards and spending power of low income earners across New Zealand. The party also believes that the changes would garner extra tax revenues for New Zealand, which will be used to pay for free tertiary education, universal student allowances, the removal of school fees, and an expansion of the state housing sector.
Photo by Hickey/Scott