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Govt Expenditure Costs Kiwis Extra $230 A Week

Govt Expenditure Costs Kiwis Extra $230 A Week

The Hon Sir Roger Douglas Tuesday, September 20 2008

Political Parties' promises to reduce tax should be taken with a grain of salt unless supported by that Party's expenditure programme, ACT New Zealand Founder and Hunua Candidate the Hon Sir Roger Douglas said today.

"The reason taxes have increased so much over the past 10 years is the rapid rise in government expenditure - which has risen 89 percent at a time when inflation has increased by only 29 percent," Sir Roger said.

"That is a $17 billion or 60 percent increase over and above inflation and, of course, taxes have risen to cover this massive expenditure increase - costing every New Zealand household or family around $230 a week or $12,000 a year.

"Voters should ask themselves:

1) What did I get for that extra $12,000 I paid for government expenditure over and above inflation?

2) How would that $12,000 a year alter my circumstances; what would I do with it?

3) Has the Government spent the $12,000 it has taken from me this year better than I could have?

"Voters believing they could have spent that $12,000 better than the Government should Party vote ACT. If voters want tax cuts that will last, they must adopt ACT policy - which would hold government expenditure increases to no more than inflation plus any population increase.

"If this were done, tax rates would fall dramatically - and I will announce just how dramatically shortly," Sir Roger said.

ENDS

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