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


Tax cuts mean job losses and falling GDP growth

Cold water has been poured on Act-National claims that tax cuts boost the economy.

Research by the Parliamentary Library shows that exceptionally poor economic performance has followed the last three tax cuts.

Alliance revenue spokesperson John Wright says GDP growth and employment have fallen following each of the last three tax cuts.

"The mantra chanted by Act and National that tax cuts are good for the economy have been proven to be wrong," John Wright said.

Taxes for high income earners were cut on 1 October 1988, 1 July 1996 and 1 July 1998. Each tax cuts was immediately followed by deteriorating economic performance and falling employment.

"Whenever taxes are cut, the growth graphs point downwards and just keep going," John Wright said.

"After the 1988 tax cuts New Zealand lost jobs and job growth slowed again after both the 1996 and 1998 tax cuts and eventually slipped into negative after the 1998 tax cuts.

"The rate of GDP growth also slowed after all three tax cuts and slipped into negative after both the 1988 and 1998 tax cuts.

"If Act and National again try to bribe their way into office by spending money we haven't got on tax cuts for the wealthy they will again drive the economy into recession and destroy even more jobs."

Documents available from Alliance Office

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

National Terrorism Threat Level Moves To Medium
Medium is defined as a terrorist attack is assessed as feasible and could well occur. The new level remains higher than it was before the 15 March terrorist attack when the threat level was low. More>>


Environment Aotearoa 2019: Report Warns Environment In Serious Trouble

The report is jointly produced by the Ministry for the Environment and Statistics New Zealand, and is a follow on from the last report in 2015.

The report says the way New Zealanders live and make a living is having a serious impact on the environment, and the benefits New Zealanders get from being in nature, though not measured or quantified, could be lost. More>>


Gordon Campbell: On Scrapping The Capital Gains Tax

As PM Jacinda Arden said yesterday, there was no point in Labour bringing a proposal into the House that it didn’t have the votes to get passed. Looking back, maybe she always felt this outcome to be inevitable... More>>


City Rail Link: Billion Dollar Cost Rise (And Preferred Bidder)

The revised cost envelope for completing the entire Auckland City Rail Link project now totals $4.419 billion. The revised cost has yet to be endorsed by the project’s sponsors (the Crown and Auckland Council). More>>


Meth Scare: Debt Write-Off For HNZ Meth Testing Evictions

People living in Housing New Zealand (HNZ) properties who were wrongly evicted because of flawed methamphetamine contamination policies will have their related debts with the Ministry of Social Development (MSD) written off. More>>


RNZ Report: Fears Grow For NZ Nurse Kidnapped In Syria

A New Zealand nurse working for the Red Cross was captured by Islamic State (IS) in Syria more than five years ago, and there are now public pleas for any information that could help bring her home. More>>


Streets Blocked In London: Climate 'Extinction Rebellion' Reaches Aotearoa

Across the world, thousands of people are taking part in a rebellion to avert climate, ecological and human catastrophe. This begins in Aotearoa New Zealand today. More>>





InfoPages News Channels