Hardworking Kiwis are struggling under the strain of taxes with total government revenue now representing close to $50,000 per household, according to ACT Leader David Seymour.
“Income tax, GST, corporate tax, excise on cigarettes and alcohol and various other taxes saw government take in nearly $85 billion in the year to 30 June 2018 – that’s $48,400 for each household in New Zealand.
“According to the Heritage Foundation, New Zealand has a tax to GDP ratio of 32.8 per cent, far above the global median of 23.5 per cent. 94 per cent of world’s population live in countries with lower tax ratios than New Zealand’s.
“Tax deters people from being productive. Just as government taxes cigarettes to deter smoking, taxes on working, saving and investing mean people do less of those activities too, leaving us all poorer.
“ACT would deliver meaningful tax cuts with the Government’s surplus and by cutting corporate welfare and wasteful spending, like Fees Free and the Provincial Growth Fund.
“Our plan is to deliver a tax cut for every working New Zealander.
“That means a top rate of 10 per cent for those earning up to $14,000. Workers on between $14,000 and $48,000 will pay no more than 15 per cent, down from 17.5 per cent. A person on the minimum wage will keep an additional $500.
“New Zealanders earning more than $48,000 will pay no more than 25 per cent. Someone on the average wage will hold on to about $1,500 more each year.
“Small and medium-sized businesses are the engine room of our economy. ACT would cut company tax from 28 to 25 per cent so they can grow and create new jobs.
“We would end corporate welfare to help fund these tax cuts. Rather than giving handouts to politically-connected businesses, the Government can support growth by cutting company taxes. Reducing the tax burden on all companies will enable them to grow, take on new staff, and pay higher wages.
“With the National Party running on a ‘no new taxes’ platform that would simply return the tax system to the status quo of election night 2017, New Zealand needs a strong ACT to deliver real tax cuts for hardworking Kiwis.”