Free Press: ACT’s regular bulletin
Free Press
ACT’s regular bulletin
ACT Stands Alone on Tax
ACT understands the real
reason for the delay in Labour’s list announcement:
they’re trying to make room for Steven Joyce. Joyce has
joined the socialists by ruling out tax cuts. He is not even
sure about bracket adjustments, saying “I’d like to one
day. Can I do it this time? I still don’t know. Maybe.”
This is a real quote.
Yes We Can!
To borrow a
campaign slogan, yes we can. Treasury forecasts $20 billion
of surpluses coming down the line, and the political contest
this year is what to do with them. The Greens, Labour, and
NZ First all have a simple answer: spend it. National
doesn’t know. ACT is the only party on the side of the
taxpayer. There’s got to be more than a couple of per cent
of New Zealanders who disagree with the Government spending
another $20 billion of our money just because they can. Tax
is one reason why ACT will do well this election.
What
About Debt?
As ACT has pointed out, we do have an
enormous debt problem, but it is not a public debt problem,
it is a household debt problem. The figures? The Government
has about $90 billion in gross debt. There is $400 billion
of gross private debt. Breaking it down to New Zealand’s
1.6 million households, that’s around $56,000 each in
government debt, compared to $250,000 in private debt.
Interest Rate Rises are Coming
What happens next? As
inflation returns, interest rates will rise, along with
mortgage rates. (The highest mortgage rates in recent times
have occurred when New Zealand First has held the balance of
power, but we digress). These rises are going to put serious
pressure on household and business balance sheets. Another
reason why taxes must be lowered.
Fiscal Creep
As
ACT has long said, fiscal creep is not just an unkind name
for Michael Cullen. It is real, and it stealthily takes
money from New Zealanders. Over the past five years,
taxpayers have paid $2.1 billion extra thanks to their
incomes getting pushed into higher brackets by inflation. So
New Zealanders have already earned $2.1 billion in tax cuts,
just to get even.
Trump Starts a Tax War
One of the
appealing things about Donald Trump is that he’s got no
respect for the various international bureaucracies such as
the OECD with their campaign for an international tax
cartel. He is going to attract business the old-fashioned
way, by offering lower taxes for people to bring their
business home. New Zealand has the fourth highest tax on
capital of all OECD countries, we should take note.
More Detail to Come
On May 11th, two weeks before the
budget, ACT will announce its tax policy. It will be a
policy based on a simple observation that has sadly been
lost by even the National Party: it was the taxpayer’s
money to start
with.
ends