Smith Lockwood: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
Smith Lockwood: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
[Volume:606;Page:4100] 
Dr the Hon LOCKWOOD SMITH (NZ National—Rodney) 
: 
 Part 1 of this Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill consists of only one clause but it is a huge clause. This clause confirms the current tax rates on the people of New Zealand. What we now know about the tax rates being imposed by this legislation is that they will confirm New Zealand in the top half of the OECD but not for our economic growth—no we are down near the bottom of the OECD for our economic growth.  
The Economist 
 published on 1 March this year 2003 confirms that New Zealand ranks sixth in the OECD—top half of the OECD—for the level of income tax direct tax we impose on industrial workers with a family. The tax burden on the average working family in New Zealand is the sixth highest in the OECD. 
What is more the rate of increase since Labour has been in office according to OECD data released just 2 weeks ago shows us that this Labour Government has clawed from the average working family in New Zealand the biggest increase in tax that has occurred in any other country in the OECD—except the Czech Republic. What a great record; what pride this Labour Government must have! The Hon Paul Swain in the chair must feel delighted that he has clawed from the average working family in New Zealand the biggest increase in tax of any country in the OECD—other than the Czech Republic. Part 1 confirms that next year that process will continue; that the Government will continue to claw more money from average working families. 
I want the Minister to address this particular issue. Labour claims to care about low-income people. I want him to face this fact: Part 1 will confirm that low-income working people with say one two or three children earning between $10000 and $15000 a year will pay an effective marginal tax rate of 100 percent. 
Opposition Members 
: What! 
Dr the Hon LOCKWOOD SMITH 
: I repeat this for the benefit of the Minister in the chair: working families earning between $10000 and $15000 a year will pay an effective marginal tax rate of 100 percent. For every dollar they earn above $10000 a year the Government takes the lot. Part 1 confirms that fact. I want the Minister in the chair to stand and tell the Committee why he is exempting the wealthy people on superyachts from paying any income tax at all while for poor families earning between $10000 and $15000 a year for every extra dollar they earn the Government takes 100 percent and if we add on GST it is more than 100 percent. 
That is frankly disgusting. It is disgusting to exempt workers on superyachts from paying any tax and to tax our poorest families 100 percent. It is not just on those poorest families either. Take middle-income families. Take a family with four children earning between $40000 and $55000—there are a lot of working families with four kids in that tax bracket—Part 1 confirms their effective marginal tax rate is 63 percent. If they earn an extra dollar above $40000 the Government takes from a family with four children 63c of that extra dollar. Add GST and if they are spending all they earn which they probably will be on $40000 with four kids—they will not be saving any money so they will be spending it all—and the Government takes 75 percent of every extra dollar they earn above $40000 for a family with four children. That is disgusting. I want the Minister to justify what he is doing to working people in this country.