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The Times

Feeling that fiscal drag? Why you could be worse off even if your pay has gone up

  • Written by Jonathan Barrett, Associate Professor in Commercial Law and Taxation, Te Herenga Waka — Victoria University of Wellington
Feeling that fiscal drag? Why you could be worse off even if your pay has gone upShutterstock

Tax has again become an election issue, more than 12 months before voters go to the polls. Part of the current debate centres around tax brackets and whether the current cut-off points are fair.

New Zealand’s income tax system uses progressive rates. Higher slices of income are taxed at higher rates. Every dollar earned up to...

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