Call for Parties to Announce Tax Policies

Chamber calls on Political Parties to Announce their Tax Policies

The incoming government should not be detered by the deteriorating fiscal position revealed today and should implement further tax cuts as soon as possible and urgently review the quality and direction of existing expenditure programmes according to the Wellington Regional Chamber of Commerce.

The Chamber has also challenged all political parties to announce their tax policies immediately now that the books have been opened.

“Tax cuts are still warranted in spite of the deteriorating fiscal position.” said Chamber CEO Charles Finny.

“In fact we argue that a carefuly constructed tax package that aims to boost the economy by improving the incentives to work, save and invest will be beneficial to the fiscal position in the longer run.

“We favour reductions in tax rates, rather than a lift in tax thresholds, because these incentives are increased with lower marginal tax rates.

“Now that the books have been opened and Treasury’s forecasts released, we call on all political parties to announce their tax policies.

“The current government’s sound fiscal management over the last nine years means that the fiscal position is strong enough to withstand further tax cuts.

“We acknowledge that as the economy slows, significant tax cuts will be less affordable without reductions in the growth of further government expenditure and savings from some specific cuts in non-productive bureaucratic spending.

“The information released today increases the need for a review of the quality and direction of government expenditure which we think the incoming government should undertake as soon as it takes office”, Mr Finny concluded.

ENDS

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