“The Greens are trying to stoke the politics of envy, but in reality their tax hikes will hurt the hairdressers, farmers, tradies and many other New Zealanders who work hard and save to provide for their families and future,” says ACT Leader David Seymour.
“They want to pretend it’s the superrich they’re targeting, but actually middle New Zealand will bear the brunt of their policies. For example:
- A hairdresser who owns their house in trust valued at $1m with $200k on the mortgage will pay an extra $12k per year in trusts tax
- A widow with a family home and a rental or retirement fund worth $3m in trust will pay an extra $45k per year in trusts tax or $25k in wealth tax without trust.
- A farmer with the average dairy farm value of $6.7m and the average farm mortgage left to pay of $4m will pay an extra $40.5k in trust tax or $17.5k in wealth tax without trust.
- A builder who owns their own house + a rental valued at $3m with a $500k mortgage will pay an extra $37.5k in trusts tax or $12.5k in wealth tax without trust.
“So many people will be financially worse off because of the envy taxes. For what? If there’s one thing that Labour has proven over the past six years its that more taxing and more spending does not equal more results.
“Core Crown tax revenue increased by almost $33 billion from 2017 to 2022. Treasury forecasts it to increase by another $7 billion in 2023. Government spending next year will be 79 per cent higher – or $137 billion – than when Labour entered government.
“All Kiwis have gotten in return for this huge increase in spending is higher inflation. Core public services like healthcare and education have gone backwards at a rate of knots.
“Tax and spend didn’t work before, it’s not going to start working just because the Government has squeezed some more money out of hairdressers, widows, farmers and tradies who deserve to keep more of what they earn.
“ACT is the only party offering a real change from tax, spend and hope. We’re the only party to release a fully-costed alternative budget, which would cut $38 billion in spending over four years, without touching frontline services, and let people keep more of what they earn with a two-rate tax system – 17.5 and 28 per cent. If you’re a nurse on $70,000, our tax cuts let you keep $2,500 more a year.
“New Zealand has major challenges that need addressing. Taxing peoples’ success are only going to make them worse. The ACT Party says New Zealand needs more success, with a strong economy built around creating conditions for prosperity, giving people the opportunity to get ahead.”