The Alliance Party has released its tax plan as part of its alternative budget, calling for a major overhaul of New Zealand’s taxation system to assist low to middle income earners, and to pay for free education and a substantial boost for health spending including free doctor’s visits.
Alliance finance and taxation spokesperson Professor Jim Flynn says one of the key goals of the Alliance is to restore a fair tax system based on ability to pay.
“Under an Alliance Government, a total of $3.57 billion dollars extra will be paid by the top 33%, particularly those who earn over $100,000 per year, but we give tax relief to the bottom 67%. The break-even point will be $41,000, that is, a family with two wage-earners each making that amount will pay no more tax.”
Professor Flynn says the budget would see a new deal for pensioners and beneficiaries
“The first $10,000 of income would be exempt from tax. This applies to everyone, but it would most benefit those on low incomes. Adjustments will be made so that those on Government superannuation and benefits are included.”
The Alliance tax plan would also provide a massive boost for low income New Zealanders struggling to make ends meet, says Professor Flynn. Continue reading