Taxpayers’ Union Welcome Labour/Green Fiscal Pact

24 MARCH 2017
FOR IMMEDIATE RELEASE

The New Zealand Taxpayers’ Union is welcoming this morning’s Budget Responsibility Rules announced by the Labour and Green Parties. The rules, which commit a future Labour/Green Government to, among other things, reduce the government’s net debt to GDP ratio to 20% within five years of forming a government and maintaining core government spending at about 30% of GDP. In addition, the Parties have committed to creating an independent policy costing office, similar to a proposal promoted by the Taxpayers’ Union.

Taxpayers’ Union Executive Director Jordan Williams says, “We welcome the rules and the extra transparency which would result from these proposals. They are an acknowledgment that government is already large enough as a share of the economy, in terms of delivering desired social outcomes.”

“Last year we applauded a similar proposal by the Green Party to create an independent policy costing unit. It appears that this new proposal is closer aligned to what the Taxpayers’ Union has sought – an independent commission or officer of Parliament, rather than just a branch of Treasury.”

“While we are disappointed that there is no reference to indexation of tax rates to inflation – so as to avoid bracket creep growing the tax burden by stealth – this is a step in the right direction from the two major centre-left parties.”

ENDS

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