Parliament

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

 

Twenty Cents In The Dollar In Five Years

ACT Finance Spokesman Rodney Hide said today that a twenty-cent top rate of tax was easily achievable in five years.

"All that is needed is for government to respect once again the tax dollars that New Zealanders work so hard for.

"To show the ease with which twenty cents can be achieved the ACT party has put together an alternative Budget. These are not ACT Budgets but rather alternative Budgets based on Treasury's own forecasts to show contrary to what critics have claimed that a top rate of tax of twenty cents is indeed possible.

"ACT is the only Party this election that has costed its tax policies and shown how they are possible.

"The baseline out to 2003 is taken from the Treasury's Pre-Election Fiscal Update while the figures for the subsequent two years are taken from Treasury's Long Term Fiscal Model.

"To show how readily achievable sizeable tax cuts are, all agreed spending is left in place -- that includes allowances for inflation and demographic changes.

"The reduction in government revenue is estimated at its most pessimistic. This assumes not one extra job and not one extra dollar of investment as a consequence of reducing the top rate of tax. Treasury's "Ready Reckoner" updated for the PREFU is used and adjusted each year by projected growth in the tax base.

"Three changes apart from the tax reductions are made. TVNZ is sold. This is sound policy. TVNZ is now run entirely commercially, it ties up approximately 1.6 billion dollars worth of taxpayer dollars, and is now on the government books as a fiscal risk. The second change is to cut out all future allocations for "Future Initiatives" -- there is enough slack in departmental budgets to provide for any new projects that have merit. Existing budgets should be the first port of call for meritorious new projects -- not the taxpayer. The third change is to apply some of the surplus to tax cuts -- 1.2 billion out of 3 billion in 2004/2005.

"The funding of the tax cuts out of "Future Initiatives" and the Operating Balance is exactly how the government is funding its 1 July 2000 tax reduction that is left in place. ACT's control on government spending will take government spending down to 29.5 pecent of GDP -- a target that National has been promising to reach for five years.

"Labour's Dr Michael Cullen has declared that cutting the top rate of tax to twenty cents in the dollar is not possible based on his reading of the PREFU. The ACT party has put its numbers out based on the PREFU. We have yet to see Dr Cullen's," said Rodney Hide.

ACT's numbers available here.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On Whether Spotify Can Save Itself; Plus A Playlist


Spotify has to be one of the most interestingly futile mouse-wheels of 21st century capitalism. Run, run, run goes the Spotify mouse but it never, ever makes a profit. For reasons set out below, it maybe never will. But it won’t be for wont of trying. Reportedly, Spotify’s music library contains 70 million tracks and it adds 60,000 more each day. By some estimates it adds on average, one new track every 1.4 seconds. (No wonder it's so hard to keep up with new music.) Spotify has 345 million active users, and 155 million of them have been willing to pay a subscription in order to enjoy their music ad-free. Ads are not a major driver of company revenue...
More>>



Alastair Thompson: Are There TPLF Ethiopia Insurgency Training & Support Operations in Uganda?


Mystery Document Alleges:
Covert Operation has US/Egypt Support
Operations Coordinated between South Sudan, TPLF and Uganda
Planning began December 2021...

More>>




 
 

Government: Action To Tackle Delays In Family Court
New legislation aimed at tackling delays in the family justice system, will help improve the wellbeing of thousands of children caught up in Family Court disputes every year, Justice Minister Kiri Allan says... More>>


Prime Minister: Chatham House Speech
What an honour it is to be back in London, and to be here at Chatham house. This visit represents much for me. The reopening of borders and resumption of travel after a difficult few years... More>>


Government: New Zealand Secures Major Free Trade Deal With European Union
New Zealand and the European Union have concluded negotiations on a major free trade agreement (FTA), which unlocks access to one of the world’s biggest and most lucrative markets... More>>

ALSO:



Economy: Financial Statements Of The Government Of New Zealand
Please note the next Financial Statements of the Government of New Zealand to be released will be for the full year ended 30 June 2022. It is anticipated that these will be released in early October 2022... More>>



Government: New Era For Better Health In Aotearoa New Zealand

The Government has today delivered a nationwide health system that will ensure better outcomes for all New Zealanders with the establishment of Te Whatu Ora - Health New Zealand... More>>



Greens: Alcohol Harm Minimisation Bill Pulled From Biscuit Tin

After years of research and advocacy, Parliament will finally consider legislation to take meaningful action on alcohol harm, says the Greens... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels