David Farrar: Who actually pays tax in NZ

The Taxpayers’ Union has released a report showing who pays tax in NZ. The findings include:

• The top 20 percent pay nearly two-thirds of all personal income tax

• The top 10 percent pay 45%, which is more than the bottom 80 percent combined

• The top 1 percent pay 14%, which is more than the entire bottom half of taxpayers

• 46,939 taxpayers pay more income tax than 2.35 million people combined

• The top quintile of income earners pay 35% of GST and the bottom quintile 10%

• The top decile of income earners pay more GST than the bottom 30% of income earners

• The bottom decile pay an average 10.4% tax rate and the top decile an average 29.6% tax rate

• The top decile pays 3,814 times more tax than the bottom decile

• The top 1% of earners pay an average of $177k in tax while the bottom 50% pay an average of $2,298.

We already have a highly progressive tax system. Those who claim it isn’t are ignoring the facts.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders