Hon Bill English
Minister of Finance
14 July 2011

Just as the economy is gaining momentum, the last thing New Zealand needs is more taxes and more debt, Finance Minister Bill English says

“The economy is really gathering momentum, as we saw in the encouraging GDP data today showing the economy grew significantly faster than expected in the March quarter despite the earthquake,” he says. “More taxes and more debt under Labour would put that at risk.

“New Zealanders have a clear choice: Labour wants to take New Zealand backwards with more taxes, more spending and more debt. National will take the country forward by growing the economy, getting back to surplus by 2014/15 and repaying debt.

“Labour has clearly learned nothing from its failed policies of the past. Having left New Zealand with forecasts of ever-rising debt and permanent deficits when he was kicked out of office in 2008, Phil Goff now wants to go back and do the same all over again.

“After making lavish spending promises over the past two years, it’s had to come up with a hodge-podge tax grab that will be good only for the armies of bureaucrats and tax accountants needed to administer it.

“Even on their numbers - and with no accounting for their spending promises - Labour would borrow more every year until 2018/19.

“It would also have six income tax rates, a GST that applies to some things but not others, a big gap between the company rate and the top tax rate and a capital gains tax on productive industries with a maze of exemptions that raises virtually no revenue in the first few years. All of this would encourage tax avoidance.

“Instead of more taxes, New Zealand needs more taxpayers. Instead of growing the Government, we need to grow the economy,” Mr English says.

ENDS

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