National’s changes to Labour Trust Tax Bill pathetic and kicks farmers

The Taxpayers’ Union is slamming the Finance and Expenditure Committee’s recommended changes to the proposed trust tax hike saying they barely touch the sides. Taxpayers’ Union spokesman, Jordan Williams, said:

“The recommended $10,000 income de minimis amount is pathetic. Many of those people who legitimately use trusts for asset protection and for the benefit of future generations will be left with no choice but to fork out more for a Government unable to cut wasteful spending. The very people who the Government is trying to target at the big end of town will simply rearrange their finances into company and PIE structures and end up paying an even lower rate than they are now.

“This is a kick in the guts to farmers who can’t easily change from a trust structure because the family home is within the farm, or the grandparent who doesn’t want their grandchild having total control over their inheritance until they are an adult.

“It’s a Labour tax grab that Nicola Willis promised a National-led Government would scrap. Just like the App Tax, it’s unfair, unprincipled, and muddles our tax system.

“The sensible approach would to be to scrap this hike altogether and realign the trust and income tax rates by cutting the punitive 39% income tax rate. Instead, National are locking in Grant Robertson’s high-tax legacy by aligning the Trust Tax to Labour’s ‘rich prick’ 39% tax rate.”