ACT condemns new reserve bank target
ACT CONDEMNS NEW RESERVE BANK TARGET
Deliberately planning extra inflation is the government condoning a loss of income for savers and wage and salary earners, ACT leader Richard Prebble said today.
“Already for savers the after tax and inflation returns of bank deposits are negative.
“Salary and wage earners have never received a wage rise in anticipation of price rises.
“The only beneficiaries of extra inflation are property speculators and the government which receives extra income tax from higher nominal wages and extra GST from inflated prices.
“The real loser will be the country,” Mr Prebble said.