Budget increases taxes on those in need

ACT regrets an enormous lost opportunity to cut tax for some of those most in need.  Instead, the government has delivered those households a $1200 a year tax increase.

"Currently, the average smoker smokes 10.6 cigarettes per day, taxed at 67c each, making $7.09 per day or $2,588 per year," says ACT Leader David Seymour.

Budget 2016: Do you feel rich at $70K?

People earning $70,000 aren’t rich, and shouldn’t be taxed as though they are, says ACT Leader David Seymour.

“No-one on a five-figure salary should have to pay a 33% tax rate. Seventy thousand was once big money, but inflation and rising wages have pushed more and more workers into this top tax bracket.

“These aren’t rich pricks. These are hard-working Kiwis paying off mortgages and raising families. Yet National taxes them at 33%. The top tax bracket shouldn’t cut in until someone earns at least $100,000.

“Tomorrow, tomorrow, tomorrow” says Key on tax cuts

ACT Leader David Seymour says the Prime Minister lacks credibility on tax cuts.

“The Prime Minister is trying to have it both ways. He campaigns from the right by noncommittally hinting at future tax cuts, but governs from the left by refusing to end tax bracket creep, let alone cut tax today.

“Even a $3 billion tax cut in 2018 would barely cancel out the $2.1 billion cost of bracket creep since the last round of tax reforms.  It would be more of a ‘tax reset’ than a tax cut.

No tax cuts, no spine

ACT Leader David Seymour is disappointed in the Government’s refusal to cut taxes this or next budget.

“Abolishing corporate welfare would have given the Government an opportunity to cut taxes”, says Mr Seymour.

“Under this Government, corporate welfare has risen to $1.344 billion a year - a cost of $752 per New Zealand household.

“These handouts have included payments for sheep given to a Saudi businessman and a boat-building company owned by the world’s seventh-richest man.

National breaking tax promises

The introduction of a land tax would be a broken promise, says ACT Leader David Seymour.

“National promised ‘no new taxes’ during the last election campaign. Then they introduced a travel levy and a capital gains tax. For the third time now, this promise could be broken, as the Prime Minister ponders a land tax. It’s another example of National campaigning from the Right and governing from the Left.

Pay-as-you-go provisional tax a win for businesses

The move from provisional tax to a pay-as-you-go system is a significant forward step for New Zealand’s tax policy, says ACT Leader David Seymour.

“This will be a long-awaited relief for many self-employed and business-owning Kiwis.

“The efficiencies of digital payments and accounting mean that a pay-as-you-go system has been overdue for some time. Our laws need stay in line with technological advances.

“Lower and simpler taxes should be important to any centre-right government so it’s good to see National address one part of that equation.

National’s $2 billion tax theft shame

National will have taken an extra $2.1 billion from the taxpayer’s back pocket by the next election as inflation pushes Kiwis into higher tax brackets, according to new figures released by ACT Leader David Seymour.

“In 2004, John Key lampooned the Labour government for their refusal to end bracket creep. But now National is perfectly happy to bleed the taxpayer for extra revenue through stealth tax hikes. It’s an all-too-common example of National campaigning from the right and governing from the left.

Virgin Australia costing the NZ taxpayer $18 million

ACT Leader David Seymour says reports that Virgin Australia is in dire financial straits are a concern for all New Zealand taxpayers.

“The New Zealand Government owns 51 per cent of Air New Zealand and according to media reports Air New Zealand has put more than $420 million into Virgin Australia. But the investment is now worth $35 million less. For taxpayers, that represents a loss of $18 million so far.