Parliament

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

 

Flat Tax - A Fairer Tax, More Jobs - ACT

SPEECH TO ACT NEW ZEALAND TAX POLICY LAUNCH Outside Hamilton IRD Office HAMILTON 11.00am Wednesday 3rd November 1999

Positive change in our tax system will mean positive change in our economy and increase the standard of living for every New Zealander.

More importantly releasing the economy from high tax will deliver, with certainty, the security and prosperity which New Zealanders are seeking in this election, 80,000 new jobs, balanced books while maintaining government spending at present levels.

The ACT Party has come to Hamilton today because the Hamilton IRD office is the most notorious in the country.

The Hamilton IRD office is rated, by accountants and tax specialists, as the most difficult in the country deal with.

Rodney Hide’s new book “The Power to Destroy” lists cases such as Ron Denby and Ralph Faulkner, New Zealanders whose lives have been destroyed by the IRD.

But I want to say here - blame the politicians.

The IRD has never been asked to collect so much tax. When Norman Kirk was Prime Minister, the IRD just had to collect one dollar in four.

Now the IRD is asked to collect more than one dollar in three of every dollar earned. As one adult in three is on state assistance, the reality is that producers in society pay over fifty per cent of all they earn.

To collect that much income Parliament has given police powers to the IRD, the power to seize bank accounts and, in the 1990's, imposed penalty interest rates that would make a loan shark blush..

The tax system has become a legal nightmare.

ACT’s tax proposals will a make a positive change and enable a fairer, simpler tax system. It will enable the IRD to become, again, a department that is known to be fair.

ACT proposes a flat tax of 20 cents in the dollar. We propose a timetable of tax cuts to reach the 20-cent rate within five years leaving all agreed spending in place. ACT’s proposal is a fairer system.

No one will be worse off because ACT will retain the low income tax rate of 15 cents.

The top rate of tax will be 20 cents. Those on higher incomes will pay more tax because they earn more dollars but hard work, thrift and personal responsibility will not be penalised.

ACT supports flat tax because it will give New Zealand a real winning regional and global advantage.

Today New Zealanders are paying, in total, five per cent more of GDP in taxes than Australians.

Already in the last three years 61,000 New Zealanders left the country permanently. New Zealand companies are also leaving for Australia.

The Alliance/Labour increased taxes will export more jobs and companies.

National’s proposal of comparable tax with Australia will not stop the drift west.

ACT’s 20-cent rate will give New Zealand the sort of advantage that Ireland’s 10-cent corporate rate has given that country.

ACT’s tax proposals have been fully costed. ACT’s Finance Spokesman, Rodney Hide, is releasing the calculations based on Treasury forecasts. They are transparent, accurate and above all, achievable.

ACT is posting, on our website, the full costings of our tax proposals. We challenge other parties to do the same.

ACT’s proposals do not require any cuts to any government spending. Indeed ACT intends spending more money on law and order, parenting, and getting people off benefits and back to work by re-prioritising spending.

There is no shortage of waste in Government. ACT's Owen Jennings exposed this year that Government had spent $5 million of taxpayers money telling New Zealanders how many times they could use their driveways. ACT's Muriel Newman exposed the fact that Government was spending $10 million just to collect the broadcasting fee. Rodney Hide has shown the waste of taxpayers money in Parliament. ACT stopped the $100 million parliamentary palace.

ACT says every dollar of taxpayers money should be spent wisely. It's time to stop the waste and ACT will insist on quality spending.

Let me make this prediction, in January ACT released a fully costed plan that showed a three cent tax cut was immediately achievable - the country could afford it, the economy needed it and hard working New Zealanders deserved it. National is finally following ACT's lead. It won't be long before a National Government supported by ACT itself begins to debate ACT's new tax policy of a 20-cent flat rate.

ACT’s proposals will increase jobs. Over and above the 117,000 new jobs forecast by the Treasury, over a four-year period, a flat tax of 20 cents will create 80,000 new sustainable jobs. These 80,000 jobs will be taxpayers.

Infometrics estimates conservatively that ACT’s flat tax will add five per cent growth to the economy over the decade.

ACT is the only party with a workable solution to the problem of how to create new jobs and growth.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Whether This Election Is Already A Foregone Conclusion

Currently, this election looks like being a no contest. The weekend’s Newshub poll has the centre left enjoying a roughly 57-36% lead over the centre right. Labour is on 50.1% and the Greens 6.5%, while National remains in the dreaded 20s at 29.6% and the Act Party is on 6.3%. Conditions continue to look terminal for New Zealand First. Despite being a stubborn brake on government tax policy and winning a few policy gains of its own, NZF is registering only a 1.9% level of support... More>>

 

Economy: Business Leaders’ Confidence Tanks As Top Kiwi CEOs Vent Their Frustrations

The New Zealand Herald’s Mood of the Boardroom 2020 Election Survey has been released with top business leaders saying New Zealand’s Covid-19 recovery is in peril – and they want a decisive role with Government in the country’s future. The annual ... More>>

ALSO:


Poll: Newshub-Reid Research Poll Shows National Rising But Labour Still Governing Alone

With less than three weeks to go, Labour remains in a position where it could govern alone in the latest Newshub-Reid Research poll* on 50.1% - down 10.8 percentage points. National has risen slightly to 29.6% (up 4.5 percentage points), but even with the ... More>>

ALSO:

Winston Peters Speech: The Gathering Storm Clouds: Ihumatao

Frequently around New Zealand you hear people say that politicians are all the same. It’s a convenient way to dismiss any careful investigation of the truth of that statement. New Zealand First since its inception has been committed to ‘one law ... More>>

ALSO:

National Agriculture Policy: Will Restore Farmer Confidence And Pride

A National Government will reduce regulatory burden and give farmers confidence for the future. Leader of the National Party Judith Collins and Agriculture spokesperson David Bennett announced National’s Agriculture policy in Gisborne today. “Agriculture ... More>>

ALSO:

Government: Taking Action To Reduce Waste And Plastics

Phase out single use and hard to recycle plastics by 2025 Create a $50m Plastics Innovation Fund to develop alternatives Standardise kerbside recycling The Labour Party is taking the next step in removing plastic rubbish from our oceans and environment ... More>>

Gordon Campbell: On Last Night’s Leaders Debate

Do political debates change voter intentions, and cause voters to switch sides? According to a 2019 Harvard Business School study conducted across 61 elections in nine countries involving 172,000 respondents, the answer would seem to be a resounding ... More>>

ALSO:

Dunne Speaks: The Election Campaign Just Grinds Slowly On And On

With just over three weeks until the General Election, the release of the first major pre-election opinion poll this week confirmed what was already being reported about this year’s campaign. Although the gap between Labour and National has narrowed ... More>>

Electoral Commission: Candidate And Party Lists Released

17 registered political parties and 677 candidates will be contesting the 2020 General Election Nominations have now closed and the Electoral Commission has released the electorate and party list candidates for 2020 online at vote.nz . Advance voting ... More>>

National: Plan To Restore NZ’s Prosperity

National’s Economic and Fiscal Plan carefully balances the need to invest in infrastructure and core public services while also reducing tax pressure on Kiwi families and businesses. National Leader Judith Collins and Finance spokesperson Paul Goldsmith unveiled National’s ... More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels