Thursday, 10 September 2020

What does “no new taxes” really mean?

ACT Leader David Seymour is calling on Labour to categorically rule out both new and higher taxes.

“After announcing Labour’s tax plan yesterday, Grant Robertson said he would introduce ‘no new taxes’ next term.

“That will provide little comfort for hardworking New Zealand taxpayers,” says Mr Seymour.

“We heard the very same claim in September 2017 from Jacinda Ardern.

“Then we got a regional fuel tax, higher taxes on petrol, waste, alcohol and tobacco, increased RUCs, a 5-year bright line test, ringfenced rental losses, a tourist tax, and more.

“So, what does Labour mean by ‘no new taxes’? New Zealanders will be asking themselves ‘Can I really trust Grant Robertson?’

“Businesses and households are facing the most uncertain environment in living memory and certainty from government is paramount.

“However, almost no New Zealander will pay 39 percent on income above $180,000 and Labour’s tax change won’t raise anywhere near $500 million.

“Even if it does, that amount of revenue won’t begin to repair the fiscal damage Labour has done. We are borrowing $500 million every four days or so.

“Instead, we need to focus on reducing wasteful, out of control spending.

“Labour is continuing its spending splurge as if nothing has changed, throwing money at various ideological projects. It has no plan to get back to surplus and repay the debt.

“We don't need to increase taxes on New Zealanders. ACT’s Alternative Budgetand Debt Destroyer show how we can reduce wasteful spending to balance the budget in 2024 while also cutting taxes to stimulate the economy.”