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More perverse logic from Jones on capital gains tax

‘You should thank us for not punching you in the face’, is the analogy Shane Jones seems to be using to justify the absence of a solid economic plan in the Botched Budget, National’s Economic and Regional Development spokesperson, Paul Goldsmith says.

When asked why the Government hadn’t made any “trophy announcement” for business, the Regional Economic Development Minister claimed that scrapping the capital gains tax was its flagship policy.

“For starters, the Government scrapped the capital gains tax because it finally dawned on them that New Zealanders didn’t want it,” Mr Goldsmith says

“If NZ First had wanted to stop CGT they could’ve done so at any time over the past 18 months. But instead they left the threat out there and further damaged economic confidence.

“It’s a shame the Government didn’t have the same revelation before it delivered a Budget that included a $71m tax on anyone using their mobile phone overseas, a $57m workplace levy on businesses, an $80m tourist tax, and $360m in petrol taxes.

“The Botched Budget comes in the middle of a sharp slowdown in the New Zealand economy, from near 4 per cent growth at the tail-end of the National Government to the low 2 per cent range now.

“Each percentage of GDP growth lost represents about $3 billion, and the Budget had scarcely anything in it to address this fundamental challenge.

“New Zealanders are rightly concerned about this, and Jones’ only response is they should be happy his Government didn’t slap them with a capital gains tax.

“No wonder business confidence remains low. No wonder new investment is low. No wonder our economy is slowing.”

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