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Income Redistribution and Direct Taxes and Transfers in New Zealand

Author

Listed:
  • John Creedy
  • Jamas Enright
  • Norman Gemmell
  • Nick McNabb

Abstract

This article examines the redistributive effects of direct taxes and transfers in New Zealand. First, it reports summary measures of the income tax‐and‐transfer system using the NZ Household Economic Survey. Second, the article examines the characteristics of low‐income NZ taxpayers. A decomposition by individual and household characteristics shows that different groups of low‐income taxpayers can be affected quite differently by various aspects of the tax‐and‐transfer system. In particular, reforms involving tax‐free zones do not appear to be well targeted to help those most in need.

Suggested Citation

  • John Creedy & Jamas Enright & Norman Gemmell & Nick McNabb, 2010. "Income Redistribution and Direct Taxes and Transfers in New Zealand," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(1), pages 39-51, March.
    • Handle: RePEc:bla:ausecr:v:43:y:2010:i:1:p:39-51
    DOI: 10.1111/j.1467-8462.2009.00575.x
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    References listed on IDEAS

    as
    1. John Creedy: Nicolas Herault & Guyonne Kalb, 2008. "Tax Policy Design and The Role of a Tax-Free Threshold," Department of Economics - Working Papers Series 1046, The University of Melbourne.
    2. John Creedy & Guyonne Kalb, 2006. "Labour Supply and Microsimulation," Books, Edward Elgar Publishing, number 4236.
    3. John Creedy & Cath Sleeman, 2006. "The Distributional Effects of Indirect Taxes," Books, Edward Elgar Publishing, number 12558.
    4. John Creedy, 1999. "Taxation, Redistribution and Progressivity: An Introduction," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(4), pages 410-422, December.
    5. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
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    Cited by:

    1. Nazila Alinaghi & John Creedy & Norman Gemmell, 2020. "The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 517-538, December.
    2. Nolan, Matt, 2018. "Did tax-transfer policy change New Zealand disposable income inequality between 1988 and 2013?," Working Paper Series 7661, Victoria University of Wellington, Chair in Public Finance.
    3. Creedy, John & Gemmell, Norman, 2018. "Income Inequality in New Zealand: Why Conventional Estimates are Misleading," Working Paper Series 20836, Victoria University of Wellington, Chair in Public Finance.
    4. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).
    5. Nolan, Matt, 2018. "Did tax-transfer policy change New Zealand disposable income inequality between 1988 and 2013?," Working Paper Series 20842, Victoria University of Wellington, Chair in Public Finance.
    6. Nolan, Matt, 2018. "Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013," Working Paper Series 7657, Victoria University of Wellington, Chair in Public Finance.
    7. Nazila Alinaghi & John Creedy & Norman Gemmell, 2020. "The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 517-538, December.
    8. Creedy, John & Gemmell, Norman, 2018. "Income Inequality in New Zealand: Why Conventional Estimates are Misleading," Working Paper Series 7629, Victoria University of Wellington, Chair in Public Finance.

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