Māori Party policy is for effective tax rates of 150%

I think readers instinctively understand that the Māori Party policy will not result in much extra revenue from high wealth NZers. It will in fact result in less revenue.

Let’s say you have $50 million of assets and you get a 6% return on those assets. Your income is $3 million a year.

Currently you pay income tax of $1,150,120. That leaves you $1,849,880. So their overall tax rate is 38%.

Now let’s look at the Māori Party Policy. Their taxes would be:

• Income tax of $1,395,900 or 47%
• Asset tax of $3,460,000 or 115%
• Total tax of $4,855,900 or 162%

So this policy isn’t Muldoon type policy of 66% top tax rate. This is a 162% effective tax rate. Not even the USSR or North Korea would have had policy like this.

So if you’re a high worth New Zealander, how moronically stupid would you have to be to stay residing in NZ? You’ll relocate to Sydney or anywhere else, and just spending five months visiting NZ every year during summer (or not visit at all).

The net result of the policy will be losing all the tax revenue they already pay.