“If Grant Robertson thinks cutting taxes by 0.42 per cent is crazy, what does he call increasing total Crown expenditure by 51 per cent in five years?” Asks ACT Leader and Finance spokesperson David Seymour.
“If Grant Robertson thinks cutting taxes by 0.42 per cent is crazy, what does he call increasing total Crown expenditure by 51 per cent in five years?” Asks ACT Leader and Finance spokesperson David Seymour.
“Robertson told RNZ Morning Report today that it was “completely crazy” to cut the 39 per cent tax rate, as proposed by ACT in our alternative budget. This is despite Minister of Revenue David Parker confirming to me in August that the top tax rate only contributed to 0.42 per cent of last year’s Government expenditure.
“Robertson’s spending is “completely crazy” times 92. He has increased total Crown expenditure by more than $50 billion in five years. That is 92 times what the 39 per cent tax rate generates in tax revenue each year.
“ACT says we do need tax cuts in New Zealand and getting rid of the 39 per cent envy tax is just the start. Our fully-costed alternative budget shows how we can reduce taxes by cutting Government spending by $7.2 billion without touching a single frontline service.
“Tax cuts aren’t crazy at all, in fact they’re necessary if we want to provide some much-needed relief to Kiwis and shake New Zealand out of its post-Covid funk. All it takes is a government who can control its spending.
“ACT would also reduce the middle income tax rate down from 30c to 17.5c in the first year. A Nurse with one child, for example, earning $70,000 would receive around $2,300 in tax relief.
“People earning between $2,000 and $48,000 will get a Low and Middle Income Tax Offset of up to $800 that offsets the additional $980 in income tax. They will also receive an additional $253 in carbon tax refunds for every person in their household, leaving them better off overall. ACT’s tax swap leaves everybody better off.
“Subsequent further tax cuts, reducing the 33 per cent rate to align with the Company Tax Rate of 28 per cent, would be implemented as soon as inflationary and fiscal conditions permit. Implementing them in Financial Year 2023/24 would allow a Government following ACT’s budget to return to Surplus by 2024/25 on current forecasts.
“While Grant Robertson thinks letting Kiwis keep more of their money is crazy, ACT thinks it is essential. ACT is campaigning for real change.”