It’s hard to imagine the Government ever cutting taxes if it won’t do so now, says ACT Leader David Seymour following the Finance Minister’s select committee appearance today.
“Despite unexpectedly high surpluses, the Government still says it will only cut taxes ‘if fiscal conditions allow’.
“How is it that even when the Finance Minister finds himself with an unexpected $7.7 billion in his pocket, tax cuts still aren’t a Budget priority? He waffles about how forecasts could change, but that hasn’t stopped him from setting other priorities.
“ACT has already identified a number of affordable tax cuts for Budget 2017. For example, the top income tax rate of 33% currently kicks in after you earn $70,000. We say that Kiwis earning that much are not rich, and so the top rate shouldn’t kick in until you earn $100,000. We’d then cut taxes for everyone in the $48,000 to $100,000 bracket down to 25% (from 30-33%).
“Those tax cuts would cost $1.5 billion a year – leaving half a billion a year for debt repayment. And that’s on top of the surplus revenue that was already forecast in Budget 2016.
“What’s the point of electing a National government if they tax you like a Labour government? It’s becoming obvious that only ACT is committed to helping the taxpayer.”