Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Treasury report undermines Cullen on tax cuts


Treasury report undermines Cullen on tax cuts

ACT Leader Rodney Hide today welcomed the release of an internal Treasury paper that shows that tax cuts would boost economic growth.

Finance Minister Dr Cullen has repeatedly denied that lower taxes would improve New Zealand's long-term economic growth rates.

The Treasury paper was written following a decision by Parliament's Finance and Expenditure select committee to cost ACT's tax policy. Released under the Official Information Act, the paper deals with questions ACT put to Treasury about the impact of its tax policies on the economy and growth. It confirmed ACT's position that tax cuts would significantly boost New Zealand's growth performance.

Treasury officials estimated that returning $5 billion in tax cuts would add 1.5% to economic growth in the medium-term. The officials qualified their estimate saying the 1.5% estimate is based on historic OECD data, and for that reason a more prudent growth figure should be used.

"The Treasury report concludes that ACT's 1% extra growth assumption is `defensible'. One percent extra growth would add $1.5 billion each and every year to New Zealand's economic output. That's $1.5 billion that we wouldn't otherwise have. It would mean an extra $15 billion after 10 years of 1% higher growth.

"Workers would have more in their pocket, the country would be more prosperous, and after a few years, even the Government would have more than it would otherwise have.

"It is good news to have Treasury concurring with ACT's findings that our tax cut package would significantly boost New Zealand's economic growth performance. ACT has long said every hard working New Zealander deserves a tax-cut and what a great shot in the arm it would be for the economy. Now, Treasury agrees," said Mr Hide.

"This Treasury paper was supposed to be supplied to the Finance and Expenditure select committee two months ago but it's easy to see why Dr Cullen was not keen to release it. The Treasury paper backs up ACT's position and demolishes Dr Cullen's."

Mr Hide said the Treasury information would be useful as ACT works on putting a revised tax package together in election year.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ability to pick winners. Others would have looked at the dying remnants of the old Act Party and written it off. Yet National needed an MMP partner and it saw the potential where no-one else did. And so it re-grew the Act Party in a petri dish in Epsom, and carefully nurtured it back to life... More>>

 

Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>

ALSO:


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

PSA: Labour-Led Government Has Mandate For Transformation, Equality And Transparency

The Public Service Association welcomes the progressive electoral landslide New Zealand voters delivered on Saturday, and the union says its members look forward to implementing policies that reduce poverty and inequality, support affordable housing ... More>>

ALSO:

Poll: Labour On 46%, National 31%, While Greens And ACT Both On 8%

Tonight's political poll puts Labour on 46 percent and National on 31 percent with just one day remaining until election day. More>>

ALSO:


Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>

ALSO:

Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>

Gordon Campbell: On Four-Year Terms Of Parliament, And On How The US Courts Are Dismantling Democracy

Last week, the issue of four-year parliamentary terms surfaced again. Infuriatingly, it is being discussed purely in terms of its convenience for political parties. They’d get so much more time to enact their policies, free of scrutiny or sanction by voters ... More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels