Tax cuts vital as mortgage squeeze looms

Rising inflation will put enormous pressure on the budgets of mortgage-holders – so the Government needs to cut their taxes, says ACT Leader David Seymour.

“The Reserve Bank says that if mortgage rates rise to 7.5 per cent, a typical first home buyer in Auckland will be committing around 70 per cent of income to servicing their mortgage, up from 60 per cent now.

“This means enormous pressure on household budgets, and families risk cutting back on necessities or being forced to abandon home ownership. The Government can relieve this pressure by announcing substantial tax cuts at this year’s budget.

“This Government’s hunger for tax revenue is making the housing shortage hurt even more. ACT is now the sole advocate for lower taxes and truly affordable housing.

“With massive surpluses on the horizon, tax cuts should be a no-brainer. ACT’s tax policy will be announced on Thursday, and will propose serious tax relief for all earners.”

ENDS

© Scoop Media