Will Labour hike the trust rate too?
Parker says the new 39c tax rate for income over $180,000 may create incentives to shift income into trusts at 33c rate, as seen from 1999-08. He eyes final resort of hiking trust rate if that happens
TLDR: Revenue Minister David Parker threw a pre-Christmas tax hike surprise in amongst the political pigeons today by suggesting a rise in the trust tax rate from 33c to match the new 39c income tax rate was possible.
If it happened in this 2020-23 term, it would appear to breach Labour’s promise of no new taxes other than than the new top personal inco…
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