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Budget in Surplus But Little Else for Taxpayers

Budget in Surplus But Little Else for Taxpayers to Crow About

15 MAY 2014
FOR IMMEDIATE RELEASE

The Taxpayers’ Union is disappointed that Finance Minister Bill English has failed to commit to giving New Zealanders meaningful tax relief in Budget 2014.

“We give the budget a score of six and a half out of ten,” says Taxpayers’ UnionExecutive Director, Jordan Williams. “Points for getting the books back into black, but deductions for not addressing the long term fiscal issues facing New Zealand.”

“While there’s a little bit of fat trimming here and there, overall its more of the same tax and spend. To fix our long term problems of an excessive tax burden, Bill English needed to wield an axe to superfluous spending. He’s failed to do so.”

“Compare this Government’s approach to Australia. Despite Australia’s dire fiscal outlook, its Government is reforming things such as the retirement age to make the public sector sustainable.”

Over the next four years, the New Zealand Treasury forecast $7.6 billion in fiscal surpluses and this year, just $15.5 million is allocated to tax relief.

"That represents $4,935 per household of over taxation. Instead of committing to giving that money back, the only tax cut in this budget is to cheque duty. That’s a tax cut of one dollar a year per New Zealander.”

“Mr English thinks that he has the balance about right. We don’t. What’s needed is an early and clear commitment to a program of reducing tax and compliance costs.”

“Of $4,935, Kiwi taxpayers get back $1. And that’s only if you still use cheques."

“No wonder John Key has hinted at tax cuts during the election campaign. This is a tax cut that benefits only the one per cent who still use cheques. What’s next, removing excise tax on fountain pens?"

ENDS

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