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ACT's Hide Says Tax Rate Should be 20c/$1

Budget: Personal And Company Tax Should've Been Dropped To 20 Cents In The Dollar

ACT New Zealand Finance Spokesman Rodney Hide today said that the Budget should have dropped the personal and company tax to twenty cents in the dollar.

"Instead, Finance Minister Dr Michael Cullen has delivered an old-style `Tax and Spend' `Future Elections' Budget," Mr Hide said.

"The surplus for this year is $6 billion. Dropping the personal and company tax to 20 cents in the dollar would cost the Government $5.5 billion. We know that's true because that was Dr Cullen's answer to Parliament.

"Dr Cullen could have dropped income tax to 20 cents in the dollar and still had money to spend and waste.

"He should have done the right thing for New Zealand and dropped taxes to provide for our future prosperity.

"Instead, we have an old-fashioned $13.1 billion `Tax and Spend' Budget that has put politics first, and our country and our prosperity last," Mr Hide said.

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