Publication:

The Dominion Post - 2021-11-26

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Simplify tax system

Opinion Letters

Complaints about debts incurred because of overpaid family tax credits (Repayments ‘hurting’ families, Nov 23) could be avoided if the tax system was simpler. Currently the Government takes money off hundreds of thousands of people only to recycle portions of it back. That process alone creates heavy bureaucratic costs. In the past workers were taxed according to how many dependants they supported. A return to leaving earned income at source would avoid the messy complications now occurring whereby people get ‘‘overpaid’’ in tax credits, and incur debts which then accrue interest. Lindsay Mitchell, Eastbourne

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