Interestingly, in Aotearoa New Zealand, the very rich don't pay much tax.
Why do I say that? Because reports show that 19.5% is the average tax paid and that most of us are in this tax bracket (Rashbrooke, 2023); yet the very rich ONLY pay 8.9% tax (Rashbrooke, 2023), or 9.5% (Inland Revenue Department, 2023a). And worse, the poorest amongst us, those of us who are an income of under $14k who MUST be struggling to keep the lights on, keep enough petrol in the car, and feed the family, pay 10.5% tax (Inland Revenue Department, 2023b)... still a higher rate than the richest (Rashbrooke, 2023).
Hell's teeth, that doesn't sound equitable, does it?! Our collective and successive governments could work harder much harder for the average Kiwi to shut tax loopholes for the very rich, and tax high income citizens the same amount as those of us who earn so very much less.
And the bulk of our tax take "comes from individuals paying income tax - in the 2024 financial year, that was 51 percent of tax revenues. That was followed by GST, which was 25 percent of revenue, corporate tax at 16 percent and 'other' at 8 percent" (Edmunds, 2024).
Further, our richest citizens have many assets which are insufficiently taxed, such as property transactions; they can pay for the expertise and instruments to shift wealth offshore in order to avoid tax. They are also able to influence - threaten - governments to dump policy changes they see as unwelcome, in order to protect their incomes (Inland Revenue Department, 2023a; Rashbrooke, 2023).
What rubs salt even more in that wound is it seems the wealthy in the US are taxed at roughly 23% (Loe, 2024) (though I must admit, I was pretty sure I had seen a 10% income tax for the USA wealthiest, but cannot find that source at present, so will go with the evidence). We tend to think of the US billionaires as being 'fat cats' who pay few taxes, yet they contribute more to their society than wealthy Kiwis.
Not something for us to be proud of.
Sam
References:
Edmunds, S. (2025, March 22). Who is actually paying the tax in NZ? - Ask Susan. Radio New Zealand. https://www.rnz.co.nz/news/business/545634/who-is-actually-paying-the-tax-in-nz-ask-susan
Inland Revenue Department. (2023a). High-Wealth Individuals Research Project [Report]. Te Tari Take. https://www.ird.govt.nz/-/media/project/ir/home/documents/about-us/high-wealth-research-project/hwi-research-project/final-report-april-2023/report-high-wealth-individuals-research-project.pdf?modified=20230423203807
Inland Revenue Department. (2023b). Tax rates for individuals | Ngā pāpātanga tāke mō te tangata. Te Tari Take. https://www.ird.govt.nz/income-tax/income-tax-for-individuals/tax-codes-and-tax-rates-for-individuals/tax-rates-for-individuals
Loe, M. (2024, March 13). No, billionaires don’t pay average of 8.2% in federal taxes. Verify. https://www.verifythis.com/article/news/verify/joe-biden/biden-billionaire-tax-rate-fact-check/536-75be1f9b-d40f-45b3-9201-82b161a4e61b
Rashbrooke, M. (2023, April 27). New Zealand’s millionaires pay lower tax rates than cashiers – it’s time to fix the system. The Guardian. https://www.theguardian.com/world/2023/apr/27/new-zealands-millionaires-pay-lower-tax-rates-than-cashiers-its-time-to-fix-the-system#:~:text=The%20report%20shows%20that%20New,the%20average%20Kiwi%20(19.7%25).











