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

 

PARLIAMENT TODAY:

Gordon Campbell: The PM’s Hair-Pulling Power Trip

There have been striking differences between (a) the account of the waitress involved in the hair-pulling incidents, and (b) the account being given by Prime Minister John Key. The version by the waitress is available here and is recommended to anyone yet to read it. By her account, there were multiple instances of hair-pulling and these persisted and persisted long after she had made her annoyance clear to Key – who had also been advised by his wife, and by other café staff that the behavior was evidently not being welcomed. More>>

ALSO:

War: What’s To Commemorate?

Gordon Campbell in Werewolf: Is there anything that can be validly commemorated on this 100th anniversary of Gallipoli? Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915. More>>

MORE IN WEREWOLF:

ALSO:

Peter Ellis Case: Minister Declines Request For Commission Of Inquiry

Justice Minister Amy Adams has declined a request from supporters of Peter Ellis for a Commission of Inquiry on the basis that an inquiry cannot be used to determine the liability of any person. More>>

Quakes: New Process For Red Zone Crown Offers

Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

ALSO:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news