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Aussie Budget Increases 'Tax Gap'

Aussie Budget Increases 'Tax Gap' Between Kiwis And Kangaroos

Rodney Hide Wednesday, 10 May 2006 Press Releases - Taxation

Australian workers will receive almost $37 billion from tax cuts announced in last night's Budget, leaving Kiwi workers further behind their Kangaroo cousins, says ACT Leader Rodney Hide.

"The 'tax gap' between New Zealand and Australia is getting wider", Mr Hide said.

"For every dollar Australians earn, politicians take 31 cents. The cost of central and local government to Kiwis is more than 38 cents in the dollar.

"The Howard government recognises that it's simpler and fairer to let workers keep more of what they earn, while Helen Clark taxes hard, washes it through government departments, and then makes people apply to get some back.

"If ACT was writing this year's budget, it would include moves towards a flat tax and a Taxpayer Bill of Rights.

"A low, flat tax would boost productivity and growth, as well as benefiting Kiwi workers, businesses and communities.

"A Taxpayer Bill of Rights would cap real government expenditure, requiring politicians to prioritise and budget, instead of reaching ever-deeper into the pockets of taxpayers.

"While John Howard can afford tax cuts, Michael Cullen's busy saying we can't. What Kiwi workers really cannot afford is another two years of Dr Cullen as Finance Minister.

"With Labour failing to create the conditions for increased growth, prosperity and opportunity, Kiwi workers will continue to lag behind our Kangaroo cousins.

"New Zealand workers have been crying out for tax cuts. Labour's refusal to deliver them will only add to the tens of thousands of Kiwis flying the ditch each year", Mr Hide said.

ENDS

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