NZ taxpayers getting off lightly, OECD data suggests

New Zealand workers are paying the second-lightest level of income tax in the OECD, data shows, and those who receive Working for Families are getting the best deal of all. Labour is proposing a new top tax rate, of 39 per cent, which would apply to income earned over a threshold of $180,000 a year. It is expected it would raise about $550 million in revenue for the Government each year. But data shows that even with that new addition, New Zealand workers would be paying a lighter rate of income tax than most in the OECD – at least, on paper. OECD statistics show that in 2019, an average worker in New Zealand had the second-smallest “tax wedge” of all the OECD countries. READ MORE:Election 2020: Labour to bring back top 39 per cent income tax rateFace it, we’re going to have to pay more taxTax is back: How do you fix a $49 billion hole? A “tax wedge” includes the tax paid by the employee and the employer. In New Zealand that’s simply income tax because neither the employee nor employer is required to pay for extra things such as social security or Medicare levies. When workers qualify… Read full this story

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