30 June 2005

National's borrow to cut tax policy would impoverish NZ

The Opposition's threat to increase government borrowings, in order to deliver significant income tax cuts to the rich, would seriously damage our economy, Progressive MP Matt Robson will say on a multi-party TVNZ Insight programme this evening.

"On Insight tonight I will outline how National and its allies' big borrowing policies would push up mortgage rates for every New Zealand family because everyone's borrowing costs go up when their government increases its overseas borrowings.

"A National-led government would deliver all of us higher interest rates that would not only make it more expensive to pay-off the mortgage, but would also make it much it harder to find a job because companies faced with higher borrowing costs are less likely to be able to afford taking on more workers," Matt Robson said.

The Progressive Party is very proud of the coalition government's Working For Families package which, when it is fully in place, will deliver very significant financial support to families most in need of tax relief and opposes any change to our progressive income tax system which is fair and working well.

The Progressive Party is campaigning in this election, however, for a cut to the headline company tax rate to match Australia's, a policy designed to propel further private sector investment in research and development and job-creation.

ENDS

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