Friday 18th Feb 2000
Rodney Hide
Media Release -- Economy

ACT Finance spokesman Rodney Hide said today that the tax changes Dr Cullen proposed today were "draconian, costly and unnecessary". "The ACT party told Hon Dr Michael Cullen of these problems when he rushed his silly tax hike through Parliament under urgency just before Christmas. He's now having to pass even more legislation to fix it up. He still hasn't solved the problems he has created in the tax system by upping the rate to 39 cents for no other reason than to hit those this government declares to be rich. "It's draconian of the Government to be declaring that there is a 'right' amount of savings each week and that any amount above a mandated cap will attract a higher tax rate. "It's draconian too that Dr Cullen is considering taxing superannuation savings at a higher rate if they aren't locked up for a time period the Government mandates. "The changes will prove costly. Superannuation plans will have to re-written. The tax laws will become even more complicated. "These changes are all unnecessary. They follow directly from Hon Dr Cullen's push to soak "the rich" which at best will boost the Government coffers by only one percent. "Once again, the Hon Dr Cullen has failed to think through his policy. He has failed to grasp the impact his policy will have on business, jobs and now on the savings industry," said Rodney Hide.

ENDS

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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