Tax cuts sweep through UK, US and Oz – what about NZ?
Taxes are being slashed by New Zealand’s competitors, while Kiwis are set to be burdened by $860 million more in taxes in 2022, says ACT Leader David Seymour.
Overnight in the UK, the Conservatives gave 32 million people a tax cut. In June, Malcolm Turnbull’s Liberals delivered a budget that will see Australia’s 37 per cent top tax rate eliminated completely. US Republicans last year cut income taxes and slashed the corporate tax rate to from 35 to 21 per cent.
“With tax cuts sweeping through the UK, US and Australia, New Zealand is looking less and less attractive as a destination to invest and do business.
“Far from reducing the burden on hardworking taxpayers, we are heading in the opposite direction. The Tax Working Group has said ‘the tax system relies on a relatively narrow range of taxes and is not particularly progressive’. Michael Cullen has floated eight new taxes or types of tax.
“Even without the inevitable new taxes to be introduced after 2020, Kiwis will pay $860 million more in taxes in 2022.
“Talent and capital will inevitably dry up and New Zealand will be left behind.
“ACT’s plan is to introduce a top personal and company tax rate of 25 per cent within the current surplus.
“Without a strong ACT Party, National will leave Labour’s massive middle-class and corporate welfare programmes in place and raise taxes to cover the bill.
“Delivering more jobs and higher wages relies on New Zealand remaining open for business and investment. Tax relief must be part of that plan.”