New Tax Will Cost Jobs
Treasurer Bill English said the land tax promised today by the Alliance proved that a Labour-Alliance government would not simply be putting taxes up, but introducing new ones as well.
"New taxes would be a certainty with a Labour-Alliance government, not just higher taxes..
"This makes a mockery of Dr Cullen's proposal for a tax review because there's little point having a review if you've already decided on a number of new taxes. It looks like Jim Anderton forgot to discuss his land tax with Labour.
"The Alliance hopes to raise $425 million a year from New Zealand businesses from its land tax. This would be equivalent to a 4 cent rise in the company tax rate, although the burden would fall more heavily on some businesses.
"Labour-Alliance policies will cost business at least $700 million - $200 million to reverse the ACC changes, $100 million for paid parental leave, and now $400 million land tax. That must cost jobs. No single business in New Zealand will benefit from the Labour-Alliance policies.
"We should be encouraging business to invest and grow because that's what creates jobs and more pay for New Zealand workers. Hitting business with a new tax to pay is punishing the people who have got the energy and commitment to try and do well for themselves and for New Zealand.
"The Alliance wants to set up a new Ministry of Economic Development to administer a $200 million Economic Development Fund. This is supposed to help business and encourage innovation and enterprise. Giving $200 million to business with one hand and taking $425 million away with a new tax proves what a nonsense that is.
"The only business that a land tax will encourage is business for lawyers and accountants," said Mr English.