What Is Happening to Tax Policy in New Zealand and Is It Sensible?
Keywords:Housing Package, Tax Policy, Top Tax Rate, Policy Space
This article reviews two recent changes to tax policy settings in New Zealand: an increase in the top income tax rate and a ‘housing package’. It argues that both represent ad hoc responses without a coherent strategy. Further, government officials’ policy assessments confirm that these were progressed unduly rapidly, based on limited analysis and against official advice on the most suitable option to deliver on the government’s own objectives. This is likely to result in policy outcomes falling well short of objectives, and potentially serious unintended consequences. Coherence of the tax system in particular is at risk.
Permission: In the interest of promoting debate and wider dissemination, the IGPS encourages use of all or part of the articles appearing in PQ, where there is no element of commercial gain. Appropriate acknowledgement of both author and source should be made in all cases. The IGPS retains copyright. Please direct requests for permission to reprint articles from this publication to firstname.lastname@example.org.