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Alliance Wrong Again - Hide

Thursday 24th Jun 1999
Rodney Hide
Media Release -- Other

Alliance Wrong Again - Hide

ACT Finance spokesman Rodney Hide said today that the Alliance once again had it completely wrong.

"John Wright is claiming that Parliamentary Library research shows that tax cuts cost jobs and growth. The only problem is that the Library hasn't done the research as claimed. All the library has done is assemble some very basic data at Mr Wright's requests. These numbers don't show anything like what Mr Wright claims.

"An empirical analysis of the relationship between taxes, jobs and growth requires high-powered statistical analysis. We are fortunate in New Zealand that this work has been done by the IRD over four years, with 35 academics involved, a seven-tier peer review process and this work has produced 14 Internationally peer-reviewed journal articles and one text book.

"This research headed up by Dr Patrick Caragata is clear in its results: Less tax, means more growth and more jobs.

"I think John Wright is going to lose this one. He's pitting one simple graph against hundreds of pages of statistical analysis, a tow-truck driver against some of the world's leading economists and econometricians, and refereed articles against a simple request for some numbers to the Parliamentary Library. Once again, the Alliance party hasn't done the work. Once again, the Alliance party has it wrong," said Rodney Hide.


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