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Tax Review a Step in the Right Direction

Tax Review a Step in the Right Direction

Wednesday 24 Oct 2001 Richard Prebble Press Releases -- Taxation


The ACT Party welcomes the McLeod Tax Review's recommendations that the 39 cent top rate of income tax be dropped and that other tax rates be examined to encourage investment, growth and jobs, ACT leader Richard Prebble says.

"ACT will study the McLeod recommendations. We're disturbed that the government is effectively dismissing the review, in what can only be described as a knee-jerk reaction," Mr Prebble said.

"For example, where is the fairness in smokers and drinkers subsidising the symphony orchestra and the ballet?

"The principal drawback of the McLeod Report is the straight-jacket that the government's terms of reference placed it in. The requirement to be fiscally neutral meant the committee couldn't look at the real problem, which is that no country has grown at 4 percent per annum - the government's target - while central and local government are taking more than 40 percent of GDP.

"It appears ACT is the only genuine low-tax party that's saying we'll only get real growth when we have a government that trusts people to spend their own money better than any bureaucrat," Mr Prebble said.

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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