Wednesday, 14 July 2021

Rising costs slam middle New Zealand


“Middle New Zealand is being hit in the pocket because of the Government’s poor policy making decisions,” says ACT’s Associate Finance spokesperson Damien Smith.

"The Government is continuing to pour fuel onto the fire by increasing costs to businesses at every turn and imposing a fortress New Zealand mentality not seen since the days of Muldoon, everywhere from foreign investment to immigration.

“Inflation is expected to go up this afternoon, the OCR will likely increase in the coming months.

“The Government’s lack of economic understanding, especially around housing has driven rent and housing costs through the roof.

“This is on top of the ill-thought through policies of tax increases, minimum wage increases, increases to sick leave, and skills shortages which have led to increases in prices for goods including fruit and veges.

“It all adds up and middle New Zealand is set to take a hammering.

“Everything this Labour Government does is either about taxing and redistributing or dividing us against each other. There is a better way, as ACT has shown with our alternative budget.

 “We would cut the 30 percent marginal tax rate to 17.5 percent. We will reverse the 39 percent tax rate and we will reverse the Government’s interest deductibility change.

"Under our plan the average earner would get between $1286 and $2107 in their pocket a year from tax cuts.

“ACT will continue to fight for middle New Zealand, the battlers being squeezed from every direction.”