Tax Thresholds

The more I think about the tax thresholds announced by National, the more I like them because they reflect what most NZers would regard as fair. In one sense they are playing catchup to a lack of movement in the last six years.

$50,000 is a pretty fair level at which to be regarded as “comfortable” and I love the idea that people will pay no more than 19% marginal rate for their first $50,000 of income. This will make a huge difference for new employees, those needing to save for a deposit etc.

Likewise moving the top tax rate to only come in at $100,000 also works well. Psychologically that is the level many people aspire to as “well off” and while personally I would like to see the 39% rate disappear in time, if you have to have one that is a good place for it to come in.