The New Zealand Taxpayers' Union is condemning a proposal to tax superannuants' additional income at a flat rate of 39 percent.

"Rising superannuation costs are a real problem, but piling on more taxes that punish productivity is not the answer," says Taxpayers' Union spokesman Louis Houlbrooke.

"Working superannuants should be celebrated, not punished. They make a positive contribution to our national productivity and to our tax system. In fact, once you account for income tax, GST, and council rates, many working superannuants pay more in tax than they receive in Super."

"A 39 percent tax rate would impose a massive disincentive on older New Zealanders participating in the economy. It would also introduce a disturbing element of age discrimination to our tax system."

"Susan St John has fallen into the age-old trap of trying to extract tax revenue in a way that will ultimately shrink the tax base. Hamstringing the economy in an attempt to cover costs would be a massive own goal."

"This looks like an attempt to dodge the fundamental problem of rising costs. A more sensible proposal, which could be implemented immediately, would be to adjust Super payments for inflation instead of average wages. That would curb rising costs without cutting real incomes for over-65s."

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