GDP slump shows tax cuts needed now - ACT

Rodney Hide
Friday, 24 June 2005
Press Releases - Taxation

News that GDP growth has slumped highlights why tax cuts are needed urgently, ACT Leader Rodney Hide said today.

“The average annual growth rate for the last four quarters is just 2.5%.

“It’s no wonder the Government has stopped talking about getting back into the top half of the OECD,” Mr Hide said.

“This year’s Budget showed low growth is here to stay under Labour. This means we are slipping backwards.

“Yet Treasury has reviewed ACT’s tax policies and concluded they would boost economic growth by between 1% and 1.5%.

“The Labour Government’s ideological aversion to tax cuts is costing New Zealand billions in lost economic opportunities.

“ACT’s tax policy of a low 15% tax rate to $38,000 and 25% after that for individuals and companies would boost people’s take home pay, employment, investment and growth,” Mr Hide said.

ENDS

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