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Can Automatic Tax Increases Pay for the Public Spending Effects of Population Ageing in New Zealand?

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dc.contributor.author Creedy, John
dc.contributor.author Gemmell, Norman
dc.date.accessioned 2013-07-03T22:30:25Z
dc.date.accessioned 2022-07-05T02:46:38Z
dc.date.available 2013-07-03T22:30:25Z
dc.date.available 2022-07-05T02:46:38Z
dc.date.copyright 2013
dc.date.issued 2013
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18777
dc.description.abstract This paper examines the extent to which projected aggregate tax revenue changes, association with population ageing over the next 50 years, can be expected to finance expected increases in social welfare expenditures. Projections from two separate models, dealing with social expenditures and income tax and GST revenue, are used. The results suggest that the modest projected required increase in the overall average tax rate over the next 50 years can be achieved automatically by adjusting income tax thresholds using an index of prices rather than wages. Based on evidence about the New Zealand tax system over the last 50 years, comparisons of average and marginal tax rates suggest that such an increase may be feasible and affordable. The paper discusses the range of considerations involved in deciding if this automatic increase in the aggregate average tax rate, via real fiscal drag of personal income taxes, is desirable compared with alternative fiscal policy changes. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries Working Papers in Public Finance ; 03/2013 en_NZ
dc.subject Taxation en_NZ
dc.subject Aging population en_NZ
dc.subject Public spending en_NZ
dc.subject Fiscal policy en_NZ
dc.title Can Automatic Tax Increases Pay for the Public Spending Effects of Population Ageing in New Zealand? en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Accounting and Commercial Law en_NZ
vuwschema.subject.anzsrcfor 140215 Public Economics - Taxation and Revenue en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 380115 Public economics - taxation and revenue en_NZ
dc.rights.rightsholder http://www.victoria.ac.nz/sacl/about/cpf en_NZ

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