Question for Oral Answer – Bracket Creep

BY David Seymour at 25 March, 2015


Delivered by ACT Leader David Seymour. March 19, 2015 Video is available here.

DAVID SEYMOUR (Leader—ACT) to the Minister of Finance: In light of his statement in the House on 11 March that low inflation “makes it more challenging for the Government because higher inflation pushes up the tax base and enables us to collect more tax in a growing economy”, does he agree that this phenomenon of fiscal drag is just another


Time to end stealth tax increases

BY David Seymour at 19 March, 2015


ACT Leader David Seymour has today called for an end to the stealth increase of tax rates through bracket creep.

“Each year, inflation pushes a larger proportion of New Zealanders’ incomes into higher tax brackets, regardless of whether they’ve had an increase in real earnings,” said Mr Seymour.

“Tax brackets should be adjusted for inflation.

“Even with low inflation this stealth tax of ‘bracket creep’ means that the average household is $1036 worse off since