Tweeting our new tax policy

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People saying that Labour’s tax rate of 36% will lead to rorts. But the trust rate will go to 36% too.

And the company tax rate is already 28% ie. 5 percentage points lower than the current top tax rate and trust rate (currently 33%).

In any case, thanks to imputation system, company tax is in effect only a withholding tax for NZ tax resident shareholders.

So thanks to alignment of trust and income tax rates (retained under Labour’s plan) and imputation, incentive for rorts is decreased.

Long story short: Labour’s tax plan is sound policy, and will not create incentives for rorts.

This entry was posted in NZ Politics, Taxation and tagged , . Bookmark the permalink.

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