The tax policies of the eight parties in Parliament are compared in the table below.
The Herald is covering all the major policy areas in a series running throughout the election campaign.
| Party | Policy | |
|---|---|---|
| Labour | Total personal tax cut package worth $10.6b including October 1 cuts. Two more cuts on April 1, 2010 and 2011. Raise top 39c threshold to $80,000. Raise 21c threshold to $20,000, and 33c threshold to $42,500. Have 15% research and development tax credit. Keep business tax rate at 30c. | |
| National | Total personal tax cut package worth $16b including October 1 cuts. Three more cuts on April 1 2009, 2010 and 2011. Cut top 39c rate to 37c, raise threshold to $70,000. Keep 21c threshold at $14,000. Raise 33c threshold to $50,000. Abolish research and development tax credit. New rebate for independent earners. | |
| NZ First | Evaluate economic circumstances but aim to: Lower GST to 10%. Introduce tax-free threshold on first $5200 earned. Introduce 20% rate on new export net income. Provide incentives for research and development. New accelerated depreciation regime for specified industries to assist development. Oppose any increase in general taxation. | |
| Greens | Shift to eco-taxes - moving tax off work and enterprise and on to pollution and use of scarce resources. Cut income taxes at bottom of scale. Replace that income tax with eco-taxes, such as on commercial use of water, unearned income from speculation, royalties on minerals like gold and silver. Further detail to come. | |
| Maori Party | Use tax system to achieve equality. Taxes and duties should be spent on reducing environmental impacts of transportation, e.g. public transport, rail and shipping freight. No tax on first $25,000 earned. Remove GST from food. Advocate for 25% tax rate for businesses with net income less than $100,000. | |
| United Future |
Set tax rates at: - 10% up to $12,000 - 20% between $12,001 & $38,000 - 30% above $38,000 Introduce income splitting for parents with dependent children. Make honoraria for volunteers up to $1000 tax free. Abolish gift duty. Align top personal, company, trust rates at 30%. |
|
| Act | Key to sustainable tax reductions is getting government expenditure under control. Cap growth in expenditure to rate of inflation. Abolish 39c tax rate. Favour first $5000 or $10,000 earned being tax free. Favour flat tax rate at as low a level as possible. Against research and development tax credits. | |
| Progressive | Support tax package legislated for while in Government with Labour. Over time, raise thresholds for higher rates so system does not become flatter. Priorities for future cuts should be families, those who need it most. Taxes should raise enough revenue to care for those who need it to maintain strong essential services. | |