Two-thirds of voters across the political spectrum support adjusting tax brackets at the rate of inflation, to prevent the average tax rate from drifting higher over time. Bracket creep, also known as “fiscal drag”, refers to inflation pushing taxpayers into higher tax brackets, despite not having higher incomes in real terms. The Green Party’s proposed reform also includes 2.5% wealth tax, a 1.5% trust tax, and an increase of the corporate tax rate. Lisa Marriot, a professor of taxation at Victoria University, said the bottom personal income tax thresholds haven’t changed since 2010. Complex & consideredRobyn Walker, a tax partner at Deloitte, said any implementation of tax indexation would need to be carefully considered.

Source: Stuff June 24, 2023 12:39 UTC