The press release from PM John Key is reproduced below, verbatim.
We can well ask, if most people will end up paying no more tax than they do now, then why bother changing anything? There are a lot of businesses who will be worse off than they are now: we feel sorry for small booksellers, for example, who are now going to have to compete with people importing tax free books from Internet booksellers in the USA and elsewhere, while they have to charge 15%, and we commented a few posts ago about businesses who will simply absorb the tax increase themselves.
The other point too is that many small businesses object to being unpaid tax collectors for the government. This wouldn't matter so much if we actually got value for our taxes, but we don't. Anyway let's leave that for another post or two.
TAX CUTS TODAY
From today, the vast majority of New Zealanders will be better off as a result of National's changes to the tax system.
We've cut all personal income tax rates, GST has increased to 15%, and we've boosted NZ Super, Working For Families, and benefit payments by 2.02% to compensate for the rise in GST.
Today's changes are just one part of our comprehensive plan to grow the economy, create jobs, boost incomes, and raise living standards for all New Zealanders. The tax package improves incentives to work, and tilts the economy towards savings, investment, and exports.
Visit our tax calculator at www.taxguide.govt.nz to find out how much better off you'll be.
Click here to read a one-page summary of today's changes.
Our changes to the tax system are about:
Helping hardworking families get ahead
Boosting growth to create jobs and lift incomes
Encouraging savings and investment
Making the tax rules fairer for all New Zealanders.
Many of you have told me that you are worried about the increasing cost of living. That's why the tax changes are so important.
From today, the average family will be about $25 a week better off, even after the increase in GST. The average earner will be about $15 a week better off. A retired couple receiving only NZ Super will be about $11 a week better off.
National was elected to secure a brighter future for New Zealanders and we are delivering on our promises.
I'm keen to hear your feedback on the tax changes. You can comment on this newsletter at www.johnkey.co.nz or on my Facebook page.