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$18.5 Billion Surplus to New Taxes on Day One

$18.5 Billion Surplus to New Taxes on Day One


Aucklanders will be wondering why they’re facing a new tax today when Treasury forecast a four-year surplus of $18.5 billion in its Pre Election Fiscal Update.

"We’ve faced a generation of over taxation and underinvestment in Auckland, now we find we’re last in line for new infrastructure and first in line for new taxes," says ACT Leader and Epsom MP David Seymour.

"What better guide to a new Government than what it announces on its first day in office? This Government has announced a new tax, sadly there will be more to come.

"The tax is also highly regressive. This tax will hit Waitakere Man hardest. Those who earn less pay a higher proportion of their income on petrol. It seems Labour is punishing suburban Auckland for abandoning Labour at the polls.

"It is also the return of the Nanny State. If you choose to drive, your petrol taxes will be used not to upgrade roads (those projects are being cancelled) but to subsidise exactly the transport you didn’t choose.

"Part of the reason, of course, is that coalition negotiations required a $1b slush fund for the 'regions' which in reality is a thinly veiled way for New Zealand First to try to win a seat in 2020.

"A more positive and fair way to help local government in New Zealand would have been to give local councils half the GST on construction projects, simultaneously funding infrastructure and encouraging councils to give consents."

ENDS


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