Excuses to avoid tax cuts don’t stack up
Excuses to avoid tax cuts don’t stack up
The Government’s excuses for delaying tax cuts don’t stack up, says ACT Leader David Seymour in the wake of Treasury’s Half Year Update.
“Bill English admitted today that, even after earthquake costs are taken into account, a $473 million surplus remains. So why is Bill English talking down tax cuts when he knows he can afford them?
“We could, for example, update tax brackets to reflect changing incomes. It’s ridiculous that workers enter the top (33%) tax bracket when they earn just $70,000.
“No-one on a five-figure salary should have to pay the top tax rate. These people aren’t rich pricks, they’re hard working Kiwis who deserve a tax cut. The Government should adjust brackets so the top tax rate doesn’t kick in until $100,000.
“That adjustment alone would cost under $300 million, leaving around $200 million for new spending and debt repayment. And that’s to say nothing of future surpluses expected to reach into the billions.
“Tax cuts might not be trendy, but a centre-right government should be committed to a programme of lower taxes. This Government’s obsession with polling trends is robbing it of economic focus.”
ENDS