“Consumers can see that inflation isn’t going anywhere yet the Government refuses to do anything to reward workers,” says ACT Leader David Seymour
“Consumers can see that inflation isn’t going anywhere yet the Government refuses to do anything to reward workers,” says ACT Leader David Seymour.
“Today’s ANZ-Roy Morgan NZ Consumer Confidence survey shows inflation expectations have increased from 5.2 per cent to 5.4 per cent. The highest read in nine months. Consumers don’t trust the Government to get inflation under control.
“Consumers are gloomy because after tax incomes are falling behind inflation. Today people work from week to week to make ends meet, learning to do more with less while Hipkins’ Government does less with more.
“Under Labour, the one thing that doesn’t get you ahead in life anymore is work. Tomorrow the Government is going to start giving more money to beneficiaries, students, and minimum wage workers. What about the rest of the country – all the people who work for a living?
“Approximately 2.8 million Kiwis rely on working, saving, or investing to get by and their after tax income is falling while costs increase. Since Grant Robertson became Finance Minister the average worker tax rate for personal income tax has increased from 20 per cent to 22 per cent. This means the average worker is being taxed an extra $3,629 annually.
“ACT’s Alternative Budget for Real Change shows a plan to arrest the decline and grow the economy. It is needed reward Kiwis for their hard work by allowing them to keep their money. Under our plan a nurse with one child, for example, earning $70,000 would receive around $2,300 in tax relief. We would remove restrictions on investments from democratic OECD countries to bring more capital into the country.
“The Government’s approach is taking in record taxes to pay for wasteful spending. ACT’s approach is to take the foot off the throat of taxpayers and let them keep more of their money.
“People like to think of New Zealand as a first world country but our income figures tell a different story. Until we have a government focussed on economic growth we will continue to see tragedies in our health system, out of control crime, diminishing education standards and poverty.
“These challenges can be addressed, but in order to do that there needs to be a strong economy built around creating conditions for prosperity, giving people the opportunity to get ahead.”