Crown accounts reveal $8 billion surplus

Treasury financial statements prove there is money for sizable tax cuts and Labour’s refusal to consider tax cuts is ‘obscene’ given the state of the Government’s books, ACT Leader Rodney Hide said today.

Crown financial statements show there is an operating surplus of $7.4 billion with a month to go.

“A record full-year surplus of $8 billion is a definite possibility.

“Dr Cullen keeps pleading poverty while each month’s accounts reveal a government increasingly awash with the taxes of hard- working Kiwis.” Mr Hide says.

“ACT’s tax cut package of 15% up to $38,000 and 25% after that, with company tax at 25% too, is easily affordable against the backdrop of an $8 billion surplus.

“We are talking about returning $6 billion of over taxation out of an $8 billion surplus.

“Cullen can try and fudge the figures all he wants, but as a number of economists have pointed out, the money is there in spades for tax cuts.

“These figures show that Helen Clark’s envy tax of 39 cents is totally unnecessary and now affects 11 percent of all taxpayers not five percent as promised. This 11 percent pay 48 percent of the country’s income tax and should be the priority to go,” Mr Hide said.

ENDS

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