New Zealanders will be deeply suspicious and rightly so about the Labour Party’s plan for new taxes as signalled today by their tax working group, National Party Finance Spokesperson Amy Adams says.
“What we’ve seen today from the Tax Working Group is a dressed up version of the old Labour Party plan to add a raft of new taxes,” Ms Adams says.
“A financial transactions tax, capital gains tax, a land tax, wealth taxes, environmental taxes; they all have one thing in common. It’s the return of Michael Cullen with his hands deep in the pockets of hardworking Kiwis trying to think of new ways to get more money from them.
“If the Government was serious about the stated aim of the Tax Working Group proposals being revenue neutral, the discussion document would include specific proposals to reduce the tax take in other areas. The document instead talks about the need for taxation to increase.
“Tax revenues are already going up because of the strong New Zealand economy. Three years ago the Government collected $66.6 billion in tax, it’s forecast to be $78.2 billion this year and $93 billion by 2021. That’s more than enough of an increase, even for a tax and spend Labour Party Government.
“Adding new taxes would only discourage savings, investment, and slow down the New Zealand economy.
“The public will be worried about the direction that the Tax Working Group appears to be taking. It’s hard enough for mum and dad investors to get a small nest egg together over their lifetime without it being subject to even more tax.
“With Sir Michael’s penchant for taxing people and Grant Robertson’s determination to spend a lot more money, storm clouds are gathering for hardworking Kiwis who already pay enough tax.”