Wednesday, 29 July 2020

No point opening KiwiSaver to pay for Govt’s spending splurge


ACT Leader David Seymour says cracking open KiwiSaver accounts is tempting but the real problem for business is out-of-control government spending.

“There’s no point cracking open your KiwiSaver so you can help pay for the Government’s out-of-control spending,” says Mr Seymour.

“We welcome ideas for business growth, but the real issue facing SMEs is the prospect of higher taxes to pay for the Government’s spending splurge.

“Out-of-control government spending now is going to have to be repaid with higher taxes later and that will act as a massive drag on small businesses.

“It’s no good freeing up people’s KiwiSaver accounts when they’re going to have to pay it back in taxes.

“The first and most important thing we can do for small businesses is to get on top of out-of-control government spending.

“The Government has undertaken to borrow and spend an extra $28,000 for every New Zealander.

“In 2034, we’ll be paying $18.3 billion a year in tax just to cover the interest on the debt. That’s more than everything we spend on education. It’s more than we spend on welfare and law and order combined.

“We need to stop the out-of-control government spending, because small businesses and other New Zealanders will be paying it back for decades to come, acting as a massive drag on the economy.

“Only ACT has a fully costed plan to get back to surplus and start repaying the debt now.”