2. Question No. 2—FinanceSAM UFFINDELL (National—Tauranga) to the Minister of FinanceQuestion No. 2—FinanceSPEAKER: Before I call Sam Uffindell can I just say to the Deputy Prime Minister I reread the point that he was making. Question 7 is a quote; it was a quote from Hansard yesterday. Question 10 is not a quote; it's more general. If there's a presentation issue here then we'll take it up with the Clerk's office for the future but thank you for bringing it up.Hon KIERAN McANULTY (Labour): Point of order. Perhaps I can explain the situation to the House so everybody understands. The reason that it wasn't put in quotes is because there was a misspelling of the Minister's name and we didn't want to include that. We provided authentication to the Clerk's Office and as such they've approved it accordingly.SPEAKER: Thank you.2. SAM UFFINDELL (National—Tauranga) to the Minister of Finance: Why were tax thresholds increased yesterday?Hon NICOLA WILLIS (Minister of Finance): As I've said in the House previously incomes rise over time due to inflation and growth in the economy but if tax rates and thresholds remain the same more and more of people's incomes are taxed at higher marginal rates and they will pay a higher and higher proportion of their income in tax. Periodically Governments should adjust tax thresholds or rates to address that at least in part. Otherwise we get into the ridiculous situation which existed the day before yesterday where a person could work full time on the minimum wage and be in the 30 percent tax bracket. The Government has done something about it.Sam Uffindell: How do other countries deal with fiscal drag?Hon NICOLA WILLIS: Almost all OECD countries either index their personal income tax thresholds or periodically adjust rates or thresholds as a response to fiscal drag—or bracket creep as it is sometimes called.Sam Uffindell: Has she seen any support in New Zealand for this approach?Hon NICOLA WILLIS: Yes. As my colleague Chris Bishop pointed out yesterday at least one commentator has endorsed this approach saying Bracket adjustment is a legitimate thing to do and I think it's a sensible thing to do." I agree with that particular commentator who was Chris Hipkins. However that commentator goes on to argue that now is just not the right time to give tax relief.Hon Paul Goldsmith: It never is.Hon NICOLA WILLIS: It never is for some people as my colleague Mr Goldsmith says. In fact further I am advised having asked about New Zealand's track record on this that every Government since 1980 whether National-led or Labour-led has at some stage adjusted rates or thresholds to provide tax relief to hard-working New Zealanders—oh with one solitary exception. The solitary exception is the previous Labour Government.Sam Uffindell: How many people have now used the Budget calculator?Hon NICOLA WILLIS: I am advised that as of this morning 638000 people have used the tax calculator to see what they are getting in long overdue tax relief. That is 39000 more people than yesterday and 121000 more than this time last week. New Zealanders are clearly very interested in tax relief and glad to be receiving it. I am not advised as to how many of them were Labour voters but I'm guessing some. Let us not forget that members opposite voted against it.Question time interrupted."