Stealth increases

A Taxpayers’ Union poll shows a majority of people support adjusting tax thresholds for inflation.

A Taxpayers’ Union – Curia Poll shows that 67% of respondents back adjusting tax thresholds for inflation with only 14% opposed. pic.twitter.com/SMKuCGWkFF

— New Zealand Taxpayers’ Union (@TaxpayersUnion) June 13, 2024

 

Do the people who don’t support this understand they are favouring tax increases by stealth?

Inflation feeds wage and salary increases which push people into higher tax thresholds and shields governments from the opposition they’d face by announcing tax increases.

Adjusting thresholds for inflation stops increases by stealth and lets people keep more of their own money.