With the BNZ-Business NZ PMI signaling manufacturing is contracting
, the Government needs to seriously consider tax relief, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union Economist Joe Ascroft says, “Global stock markets have been in turmoil for the last two weeks in response to trade
tensions and protests in Hong Kong, but this most recent data shows the economy may now be softening at home. Tax relief
would be a quick and effective way of relieving pressure on households and businesses.”
“Monetary policy may not be able to do all of the heavy lifting in a downturn – last time we had a recession we needed
to cut interest rates by 500 basis points and there is far less room than that available now.
“When he last cut interest rates, Adrian Orr said that ‘monetary policy needs friends’. Letting employees and employers
keep a little bit more would be an effective way to give the RBNZ some of this support.”
New Zealand Taxpayers' Union
New Zealand's grassroots campaign for lower taxes and less government waste
The New Zealand Taxpayers' Union is an independent activist group, dedicated to being the voice for Kiwi taxpayers in
the corridors of power. It's here to fight government waste and make sure New Zealanders get value for money from their
tax dollar. New Zealanders are invited to join and donate at http://taxpayers.org.nz