“ACT’s tax amendments up for vote today present a real test for the National Party,” says New Zealand Taxpayers’ Union spokesman Louis Houlbrooke.

“The proposals ACT has put up are substantial, but hardly over the top. Reinstating interest deductibility for landlords and scrapping the 39 percent tax bracket are already National Party policies. ACT’s big kahuna is cutting the infamous 30 percent income tax bracket, down to 17.5 percent. The Taxpayers’ Union has often argued that this is New Zealand’s nastiest tax rate, robbing low earners of almost a third of the incentive to upskill, work more hours, or achieve a promotion.”

“It’s hard to see Labour supporting such substantial tax relief because it would threaten the Government’s ability to deliver spending sweeteners in May’s Budget.”

“But National is a centre-right party and should have no qualms about cutting low priority spending to deliver tax cuts – especially not during a cost of living crisis. It would be a real shame to see National vote down a tax cut just because it came from ACT, a potential coalition partner.”

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