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ACT Right To Focus On Economic Growth In New Recovery Document

The New Zealand Taxpayers’ Union welcomes ACT’s growth-focused Economic Recovery Discussion Document.

Taxpayers’ Union Executive Director Jordan Williams says, “No matter how many times Grant Robertson says things aren’t as bad as he expected, the Debt Monster is still a very real threat to future generations of taxpayers. If we don’t significantly increase our productivity, this debt will be repaid in the form of higher taxes – taxes which will themselves place further restrictions on economic growth.”

“ACT is right to target what we call ‘regulatory taxes’. Specifically, the Resource Management Act and proposals under the Zero Carbon Act create a convoluted web of rules and restrictions, imposing costs that at best, drive up the cost of living, and at worst, prevent productive activities from occurring in the first place.”

“Similarly, businesses we speak to report enormous compliance costs from the anti-money laundering legislation introduced by the previous National government. It’s a relief to see a political party opening up debate on these well-intentioned, but costly, rules.”

“While ACT’s proposed tax cuts aren't revolutionary, they would certainly be welcome. The current 30 percent tax rate for income over $48,000 is a real motivation killer for anyone considering upskilling or taking on a side hustle. Of course, tax cuts must come hand in hand with sharp reductions in wasteful government spending – we’d like to see more detail from ACT on this front.”

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