“As National does a u-turn on repealing the 39 per cent tax rate, ACT can be unequivocal in its position that it needs to be repealed,” says ACT Leader David Seymour.
“As National does a u-turn on repealing the 39 per cent tax rate, ACT remains unequivocal in its position that it needs to be repealed,” says ACT Leader David Seymour.
“ACT stands for real change. We will steer New Zealand away from its current path of Government-led, high tax, high debt nonsense that makes life harder for hardworking New Zealanders.
“Under questioning in Parliament I got David Parker to admit that the 39 cent rate raises only 0.42 per cent of what Government spends. That’s after the Government raised its spending by 46 per cent in the last three years. As National likes to say, the Government doesn’t have a revenue problem, it has a spending problem.
“New Zealand needs real change. We need a Government that does not run at the first sign of trouble but actually stand up for good policy. A top tax rate that raises only 0.42 per cent of Government expenditure is an exercise in envy. It is tall poppy syndrome in the tax code that holds us back from solving real problems like low productivity.
“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 are 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.
“ACT is the only party in Parliament who has been totally unequivocally clear on the issue of tax.
“We will repeal any taxes proposed by Labour, we will get rid of National’s capital gains tax in the bright-line test, we will 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.
“ACT stands for real change, our proposals would give a $2,000 tax cut to someone on the average wage.”