Thursday 6 Jun 2002 Richard Prebble Press Releases -- Economy

ACT will implement a well-designed package of tax cuts to boost growth, jobs and prosperity.

ACT policies will achieve the 4% plus growth needed to return New Zealand to the top half of OECD countries. ACT policies are pro-business (that in New Zealand means small business), pro-jobs and pro-growth. New Zealand is a trading nation in a global economy. Australia's company tax is 30 cents, i.e. 3 cents lower than New Zealand.

Under Labour, compliance costs have increased $26,000 over three years for a medium-sized business. OECD says New Zealand taxes on income and company profit are third highest in OECD.

ACT will immediately:

· Cut company tax rate from 33 cents to 28 cents - (lower than Australia).

· Reduce personal income tax from 33 and 39 cents to 28 cents, and from the present 19.5 cents to 18 cents, ie. a tax cut for all workers.

· No one will be worse off - there will be no cuts to health or education.

· Conduct a zero-based review of regulations, a Regulatory Responsibility Act - rewrite Employment Relations Act, ACC, Resource Management Act and OSH - to make business friendly.

Cost of tax package:

· $2.9 billion dollars. Paid for by cancelling Cullen's super scheme, corporate welfare for business, Maori TV, Kiwi Bank, Air New Zealand bail-out, and scrapping Closing the Gaps spending.

Benefits:

· Increased investment

· Extra jobs

· Four percent plus growth

· Greater prosperity

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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