Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Colin Craig’s tax figures do not add up and are dishonest

Media Release
Friday 29 August 2014
ACT Leader Dr Jamie Whyte

Colin Craig’s tax figures do not add up and are dishonest

“Colin Craig’s tax plan is to have two rates of income tax: 0% up to $20,000 and 25% above that. This will leave a $6.4 billion hole in the budget even before the new spending proposed by the Conservatives. The Conservative tax promises are dishonest” said Dr Jamie Whyte.

“Using Treasury figures, ACT calculated that to get the same revenues with a tax-free threshold of $20,000 the rate above $20,000 would have to be 34%, a significant tax increase for middle New Zealand.

At a Papakura combined churches meeting of candidates on Wednesday, Conservative Party candidate Kevin Stitt made a point of immediately correcting the ACT candidate’s claim that the Conservative Party’s flat tax rate will be 34%. Mr Stitt told the audience that the Conservative Party flat tax rate above $20,000 was 25%. When questioned again on this, he confirmed that the flat rate tax rate was 25%” said Dr Whyte.

“The budgetary mathematics of Colin Craig’s 0% and 25% rates are brutal.

Total taxable income in New Zealand is $143.5 billion. Of this, $54.8 billion is from income below $20,000, from which Craig would collect no tax. All income tax will be levied on income above $20,000, which amounts to $88.7 billion. 25% of $88.7 billion is $22.2 billion. That is how much income tax will be collected on Craig's tax plan.

But income tax today totals $28.6 billion. So Craig's plan will require the government to reduce spending by $6.4 billion

“To fund a $6.4 billion dollar tax gap the Conservatives must slash Super, hospitals and education. There is no other spending that comes near to seven billion dollars.

“The Conservatives promises on tax are either silly or dishonest.

“Even their proposed 25% flat tax increases marginal tax rates for middle-income families already hit over the head by the Working for Families abatement rate of 25%. Many ordinary families and second earners will face an effective marginal tax rate of 50% under Colin Craig’s proposals” said Dr Whyte today.

“ACT was able to produce a fully costed policy using Treasury figures to reduce the top tax rate to 24%, the company tax initially to 20% and then to 12.5% by 2020 in its Alternative Budget Analysis. ACT did this by cutting corporate welfare and cutting middle-class welfare by $4 billion. These tax and spending reforms will boost the growth rate by at least one percentage point: that is, by at least one third,” said Dr Whyte.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joseph Cederwall: Building a Community Newsroom

The “Scoop 3.0” Transition Plan
There is good reason to believe that a new path and a better future is possible for Scoop in 2019 as a pioneering independent Media company. A combination of new technology, ideas, institutions and business models and a renewed energy and commitment by the Scoop team, means Scoop aims to be at the forefront of the development of this renaissance that we term ‘News 3.0’.

By opening up Scoop’s structure to community ownership and exploring decentralised technology through the blockchain we can ensure the public has a stake in this enterprise and a say in its development. More>>

 

Gordon Campbell: On Jami-Lee Ross (And The New Hobbit Law)

Clearly, Jami-Lee Ross is not waging a normal form of political warfare, with agreed rules of combat and rational cost/benefit calculations.

This is politics-as-terrorism where everything is being sacrificed by the man in the bomb vest in order to remove Simon Bridges as the leader of the National Party. More>>

Text Messages Released: National On $100,000 Donation(s)
The Botany Electorate of the National Party received 8 donations, and Mr Ross declared 8 donations to us. More>>

ALSO:

Film Industry Working Group:

Three Killed: DOC Supporting Family, Colleagues After Helicopter Crash

The Department of Conservation (DOC) is rallying around family and colleagues of the staff who died in a helicopter crash this morning in Wanaka... The helicopter, with two DOC staff on board, was on its way to undertake tahr control in the Haast area when it crashed. More>>

ALSO:

Political Donations: Greens Call For Tighter Anonymity Rules And Public Funding

“It is clear that those vested interests have a tangible influence on the decision making of political parties. This is a threat to democracy and should change.” More>>

ALSO:

Education Amendment Bill Passes: Urgency Sought For Partnership School Treaty Claim

The claim takes issue with the acts and omissions of the Crown in respect of the closure of Partnership Schools | Kura Hourua. More>>

ALSO:

Salvation Army Paper: Call For Public Housing Investment

To meet these future demands the report suggests the government needs to look beyond the private rental market and begin to invest heavily into home-ownership programmes and more public and social housing. More>>

ALSO:

Cull: Himalayan Tahr Control Operation Proceeding

“The target of controlling 10,000 Himalayan tahr over the next eight months remains. The revised plan provides for a staged control operation with increased reporting to the Tahr Liaison Group...” More>>

ALSO:

Health: Petitions To Fund Breast Cancer Drugs

Women marching to Parliament today, to present two petitions calling for Government funding of vital medicines, have 100% support from a coalition representing than 30 breast cancer organisations. More>>

ALSO:

Animal Welfare Advisory Committee: Report On Rodeo Practices Released

The independent committee that advises the Minister responsible for Animal Welfare, has today released a report on animal welfare in rodeos, together with advice to the Minister making recommendations to improve the welfare of the animals in rodeos. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels