6 May 2014

Give Kiwis a break

“Ordinary Kiwis deserve a break. Next week’s Budget must give them one by reducing tax for all incomes below $50,000 by 5% and by cutting GST back to 12.5%” said Stephnie de Ruyter, leader of the Democrats for Social Credit Party.

“These two small steps would reduce prices, alleviate inflationary pressure on the economy, take some strain off household budgets, and help businesses.

“To offset the estimated $6.4b cost of tax cuts, a transactions tax targeting previously untaxed financial transfers must be introduced. Set at 0.01%, this measure would be applied to transactions such as credit default swaps, debt securities, convertible & exchangeable bonds, currency trading, and derivatives.

“It’s worth noting that eleven European countries, including France and Germany, have agreed to introduce a similar transactions tax which is also known as the Tobin Tax or the Robin Hood Tax. And more than forty other countries already have some form of transfer tax.

“High taxes and increased interest rates directly feed inflation. If the Government is genuinely concerned about inflationary pressures, these are the areas which need addressing.”

ENDS

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