Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Twenty Cents In The Dollar In Five Years

ACT Finance Spokesman Rodney Hide said today that a twenty-cent top rate of tax was easily achievable in five years.

"All that is needed is for government to respect once again the tax dollars that New Zealanders work so hard for.

"To show the ease with which twenty cents can be achieved the ACT party has put together an alternative Budget. These are not ACT Budgets but rather alternative Budgets based on Treasury's own forecasts to show contrary to what critics have claimed that a top rate of tax of twenty cents is indeed possible.

"ACT is the only Party this election that has costed its tax policies and shown how they are possible.

"The baseline out to 2003 is taken from the Treasury's Pre-Election Fiscal Update while the figures for the subsequent two years are taken from Treasury's Long Term Fiscal Model.

"To show how readily achievable sizeable tax cuts are, all agreed spending is left in place -- that includes allowances for inflation and demographic changes.

"The reduction in government revenue is estimated at its most pessimistic. This assumes not one extra job and not one extra dollar of investment as a consequence of reducing the top rate of tax. Treasury's "Ready Reckoner" updated for the PREFU is used and adjusted each year by projected growth in the tax base.

"Three changes apart from the tax reductions are made. TVNZ is sold. This is sound policy. TVNZ is now run entirely commercially, it ties up approximately 1.6 billion dollars worth of taxpayer dollars, and is now on the government books as a fiscal risk. The second change is to cut out all future allocations for "Future Initiatives" -- there is enough slack in departmental budgets to provide for any new projects that have merit. Existing budgets should be the first port of call for meritorious new projects -- not the taxpayer. The third change is to apply some of the surplus to tax cuts -- 1.2 billion out of 3 billion in 2004/2005.

"The funding of the tax cuts out of "Future Initiatives" and the Operating Balance is exactly how the government is funding its 1 July 2000 tax reduction that is left in place. ACT's control on government spending will take government spending down to 29.5 pecent of GDP -- a target that National has been promising to reach for five years.

"Labour's Dr Michael Cullen has declared that cutting the top rate of tax to twenty cents in the dollar is not possible based on his reading of the PREFU. The ACT party has put its numbers out based on the PREFU. We have yet to see Dr Cullen's," said Rodney Hide.

ACT's numbers available here.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Hong Kong Protest Movement

Nearly ten weeks after the huge Hong Kong protests began, managing to still get 1.7 million people onto the streets in the rain is a testament to how strong the pro-democracy movement has become...

The pro-democracy protests enjoy huge support among Hong Kong’s youth, partly because the democratic systems currently at risk have only a limited time span. More>>

ALSO:

 
 

Welfare: More Measures To Help Those Facing Homelessness

Ministers have announced $54 million in Government funding for initiatives which will support at-risk individuals and whānau to stay in their existing tenancies. The funding will also provide additional wrap around services. More>>

ALSO:


Corrections: New Strategy On Māori Reoffending And imprisonment

Authentic co-design with Māori, incorporating a Te Ao Māori worldview, and greater connectedness with whānau are key elements of Hōkai Rangi, Corrections’ new departmental strategy designed to address the long-term challenge of Māori reoffending and imprisonment. More>>

ALSO:

Pacific Island Forum: Australia v Everyone Else On Climate Action

Traditionally, communiques capture the consensus reached at the meeting. In this case, the division on display between Australia and the Pacific meant the only commitment is to commission yet another report into what action needs to be taken. More>>

ALSO:

Unscoped Or Missed Damage: Resolution For Canterbury Owners Of On-Sold Homes

People with over-cap on-sold* properties in Canterbury can now apply for a Government payment so they can get on and repair their homes. More>>

ALSO:

Hamilton-Auckland: First Urban Growth Partnership Signed

New Zealand’s first urban growth partnership between the Government, local councils and mana whenua was signed at a meeting of mayors, chairs and ministers in Hampton Downs today. More>>

ALSO:

Vote On Action Next Week: Secondary Principals Walk From Negotiations

“Unfortunately we consider there is no further value in continuing negotiations at this point. The government has not been able to table an offer that will be acceptable to our members.” More>>

Patrol Car Stolen, Glocks Taken: Manhunt In Gore

The driver rammed the patrol car before fleeing on foot with Police chasing, also on foot. The man has then circled back around, stolen the patrol vehicle, which had the keys left in it, and rammed another Police car... Two Police-issued Glock pistols were stolen. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels