Government’s tax windfall no help to Kiwi battlers

Thu, 05 May, 2022

“While Kiwi battlers are tightening their belts in the midst of a cost-of-living crisis, Grant Robertson has raked in an extra $2.68 billion in tax revenue off the back of record inflation,” says ACT Leader David Seymour.

“Financial Statements of the Government of New Zealand for the nine months ended 31 March 2022 show an extra $2.68 billion in tax revenue compared to Treasury’s Half Year Economic and Fiscal Update 2021 (HYEFU 21).

“This follows tax revenue for the year to June 30 2021 recording an extra $14 billion when compared to Treasury’s Pre-Election Economic and Fiscal Update (PREFU).

“Grant Robertson knows as well as anyone if you print more money you get more of it back in taxes, and his money printers have been blowing smoke as he has relentlessly printed and spent over the past couple of years.    

“Inflation is at a 31-year high and Kiwis are being squeezed from every direction. The Reserve Bank has printed – and Labour has borrowed and spent – tens of billions of dollars in the past two years. That money is moving around the economy and pushing up the price of everything.

“Almost 70 per cent of Kiwis want a tax cut to help them navigate the cost of living crisis. Labour are pulling in more taxpayer dollars than they ever expected but still they won’t give Kiwis any tax relief.

“ACT stands for real change, that would include dumping the bright-line capital gains tax completely, giving a $2,000 tax cut to someone on the average wage, scrapping the 39 per cent envy tax, and restoring interest deductibility.”