Temporary tax breaks will put more money back into the
economy if people can afford to spend and use the
opportunity to invest in their own futures, says Auckland
Business Chamber CEO, Michael Barnett, commenting on
National’s alternative budget plans.
“Cash
strapped businesses confident about their viability may well
go out and buy new technology, plant, equipment and
resources this year to take advantage of the doubling of the
depreciation rate on fixed assets,” he said. “And the
temporary – and expensive – tax cuts will put more money
in consumers’ back pockets which hopefully they will spend
to pay down debt and keep local businesses ticking
over.”
Mr Barnett said he was pleased that National
had abandoned its unrealistic aim to get debt down to 30 per
cent of GDP by 2030 giving itself wriggle room with a 35 per
cent of GDP target by 2034 focus combined with hefty
repayments in its bid to balance the books.
“We need
to stop looking at lowering our debt to GDP ratios and using
that as a measure of economic success. Debt has never
stopped the United States from expanding and Japan would
still be rebuilding after WW II if they let debt consume
their future. And it cannot stop us. We need Government to
spend and spend on the right things,” he
said.
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