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Economy Needs Tax Cuts Not Talk - ACT

Tuesday 6th Jul 1999

Media Release -- Economy

ACT Finance Spokesman Rodney Hide today said it's clear from the Treasurer's speech this morning that the Government is trying to tailor a tax cut to get votes, rather than for the good of the whole economy.

"That is not good Government. Fiddling with the threshold levels will not give businesses the boost they need to create more jobs.

"The new Treasurer's tax cut striptease is costing the Government's credibility and is making National look like a Party of ditherers. The tease has taken all year and so far Bill Birch and Bill English have only thrown off one sock. No one is impressed, least of all business.

"The Government missed its golden opportunity in the budget for an immediate three cent tax cut to the top rate of tax. They know that is what needs to be done.

"Bill English's excuse not to cut the top rate of tax is that the Government cannot afford it. This convinces no-one. Government spending has rocketed up by $100 per week per household in just five years. It's poor quality and excessive Government spending that is robbing New Zealanders of their hard-earned cash.

"We've seen this with the Modgeridge and Wall taxpayer paid hand shake, the $5billion coalition spend-up and massive over runs on Government computer systems that don't work.

"Bill English must get Government spending under control and cut out the heartbreaking waste of taxpayers money.

"If the Treasurer concentrated on ensuring quality Government spending, New Zealanders would have the social services they deserve and taxpayers would be able to keep more of their hard earned money.

"It's time Government got its priorities right. We need an immediate three cent tax cut and a commitment from the Treasurer to fiscal discipline," said Rodney Hide.

© Scoop Media

 
 
 
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