The benefits of a broad base and low rate

Geordie Hooft writes in The Press:

Over 90 per cent of tax revenue is collected from personal income tax, company tax, and GST. Due to the broad application of GST, New Zealand’s GST collections are around 10 per cent of GDP – the highest in the OECD, even though we have the sixth-lowest rate.

Similarly, the amount of tax collected from individuals as a percentage of GDP is the sixth highest in the OECD, even though we have the seventh lowest top personal tax rate (currently 33 per cent).

Some on the left moan that our top tax rate is only 33% and demand the rich be punished more. But unlike most countries we have very few exemptions, and the broad base means that actually wealthy individuals are paying just as much tax if not more than many richer people overseas.