NZ Opposition Would Hike Top Income Tax Rate
Wednesday, June 25, 2014
New Zealand's opposition Labour Party has said that it would increase the top tax rate to 36 percent if it wins the election this September.
The 36 percent rate would apply to those earning more than NZD150,000 (USD130,153) per year – about two percent of earners, Labour leader David Cunliffe said. While the proposed rate is higher than the 33 percent rate currently in place for those earning more than NZD70,000, it is lower than the 39 percent rate proposed by Labour ahead of the last election.
The party released its manifesto, in the form of an "alternative budget," on June 25, 2014. It includes plans to crack down on tax avoidance by multinationals, which it claims would yield NZD200m in additional revenue for the government per year.
Labour also wants to introduce a 15 percent tax on capital gains from investments, excluding sales of family homes. It has also proposed an increase in the tax on income from trusts to 36 percent to tackle tax avoidance.