Grim analysis by ANZ showing surging inflation is becoming a threat to economic growth and that Kiwis have to work longer hours just to stand still is further evidence that Labour is losing control of the economy, National’s Finance spokesperson Nicola Willis says.

“With annual growth forecasts sliding and ANZ flagging the rising risk of a recession, it’s clear that Labour’s tax and spend strategy is failing and Kiwis are becoming increasingly worse off.

“Weak growth is inevitable when the squeezed middle gets left behind. While Grant Robertson collects more and more tax simply because of inflation, Kiwis are paying more for food, petrol and housing.

“Inflation is running laps around wages and Kiwis are falling behind. As ANZ confirmed today, people need to work longer hours just to maintain the same purchasing power.

“Yet for someone on the minimum wage who wants to work a few more hours, a 44 hour week would have them facing a tax rate of 30 cents on the dollar.

“Kiwis need relief from the cost of living crisis. When inflation is the highest in three decades and forecast to keep surging, now more than ever is the time to adjust tax brackets for inflation. If not now, then when?

“Someone earning $55,000 a year would pay $800 less tax under National’s plan to adjust tax brackets for inflation. Letting Kiwis keep more of what they earn would help insulate families from inflation and restore confidence to an economy that today is at risk of faltering.”

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