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More Desperate Defence From Cullen on Tax - ACT

Monday 2nd Aug 1999
Rodney Hide
Media Release -- Economy

ACT Finance spokesman Rodney Hide said that Michael Cullen's defence today of his plans to increase taxes showed how desperate he has become.

"Dr Cullen attempts to rubbish the idea that higher tax means less investment, less jobs and less growth. He's once again out on his own with only a few left-wing loonies supporting him.

"The sad thing is that Dr Cullen can't understand and can't be bothered to read the research work the IRD has undertaken over four years showing that the best thing government can do for jobs and for growth is to cut tax.

"Dr Cullen - who has had several attempts to get his super numbers to add up, and has three policies on Fringe Benefit Tax - declares the IRD study to be "riddled with fundamental errors".

"This is a study that was undertaken by 35 academics, had a seven-tier review process, and has produced 14 peer-reviewed international publications and one textbook. The economic credibility of the IRD's study and its authors is very high. The economic credibility of Dr Michael Cullen is at the opposite end of the spectrum.

"Instead of engaging academic debate that he can't win, Dr Cullen should just come clean and tell voters exactly how much Labour plans to spend and what research he has to show the effect his tax hike will have on jobs and growth," said Rodney Hide.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.


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