“The Government’s books show Grant Robertson is profiteering from record inflation as he refuses to give any money back to New Zealand taxpayers”, says ACT Leader David Seymour.
“ACT can reveal the Government has taken in a massive $14 billion more in income tax revenue than expected, but Robertson won’t be giving a single cent back to middle New Zealand.
“The Treasury’s Pre-Election Economic and Fiscal Update forecast tax revenue to be $84 billion, but $98 billion was recorded in the year to June 30 2021.
“While Robertson is profiteering from inflation, households are being squeezed with rising prices and more tax.
“Inflation is at a 31-year high and Kiwis are being squeezed from every direction. The Reserve Bank has printed – and Labour has borrowed and spent – tens of billions of dollars in the past two years. That money is moving around the economy and pushing up the price of everything.
“Grant Robertson has never seen a taxpayer’s dollar he couldn’t spend. Seeing an extra $14 billion from the pockets of taxpayers must have felt like Christmas had come early.
“Robertson can’t say that this extra tax money was spent on COVID-19 when health expenditure was $97 million lower than forecast and welfare spending was $3.2 billion lower than forecast.
“The real reason for the Government’s tax windfall is that inflation also took off beyond forecast – 3.3 per cent in the year to last June instead of the 1.2 per cent forecast – pushing up the price of everything with the Government profiting $14 billion from the cost of living crisis.
“ACT would get borrowing and wasteful spending under control and would cut the 30 per cent tax rate to 17.5 per cent, giving the average worker an extra $2,000.”