“Today’s inflation figures are the direct result of Labour’s addiction to borrowing and spending and Kiwi families are paying an almighty price,” says ACT Leader David Seymour.
“The Government’s refusal to take responsibility is the equivalent of it giving the middle finger to middle New Zealand.
“Its relentless borrowing and spending has added to the cost of just about everything. Prices are rising because there’s too much money chasing too few goods.
“Today’s inflation figures amount to a 6.9 per cent tax on Kiwis. If the Government put up GST by 6.9 per cent there would be an uproar. Inflation amounts to the same thing.
“This year is the Year of the Hangover. New Zealanders are now feeling the effects of our lock ‘em down, lock ‘em out, borrow, print and spend approach to COVID-19.
“Labour bought into the delusion that sealing ourselves off from the world for two years would cost us nothing. If the economy seems buoyant, it’s only because of enormous borrowing propped up by artificially low interest rates – that’s now pushing up the price of everything.
“Kiwis need tax relief. The cost of living for New Zealand families is through the roof. Rents are up, mortgage rates are on the rise, the cost of food is up, petrol is up, but wages aren’t keeping up.
“Kiwi battlers are being squeezed from all directions. We would deliver a middle income tax cut while reducing wasteful spending to balance the budget sooner:
- Reduce the middle-income tax rate from 30% to 17.5%. Our plan will allow the average full-time worker to keep $2,000 more a year to help deal with the rising cost of living. That’s almost $40 more a week in the pockets of hardworking taxpayers to help them with the cost of life.
“In the Year of the Hangover, Kiwi Battlers will find it increasingly difficult to make ends meet.
“ACT’s solutions will make life more affordable for middle New Zealand. We will keep listening to the concerns of New Zealanders and pushing for better solutions to make life more affordable for Kiwi families.”