Responding to the ACT Party’s alternative Budget released today, New Zealand Taxpayers’ Union spokesman Jordan Williams says:

“It’s a relief to see a political party significantly challenge the size and role of government. If Christopher Luxon thinks this full package goes too far, he would still do well to treat the proposed spending cuts as a menu of options that could be used to deliver tax relief.”

On spending cuts, Mr Williams says:

“ACT’s Budget does an especially good job of tackling government waste. David Seymour has identified exactly which sacred cows the Government could cull to enable substantial tax relief along with reduced debt. Abolishing corporate welfare programmes like Callaghan Innovation and EECA, along with make-work schemes like Jobs for Nature and “shovel-ready” projects will make the vested interests profiting from those schemes squeal, but result in fairer outcomes with lower taxes.”

On asset sales, Mr Williams says:

“Selling Landcorp is long overdue. There is no good reason for the Government to own and run a farm. Our efficient private sector farmers will make better use of the land.”

On ACT’s income tax proposals, Mr Williams says:

“ACT is understandably promoting the significant boost in real incomes under its two-rate income tax proposal. But there’s another feature of their tax proposals that deserves attention: aligning the top income tax rate with the company tax rate would eliminate the problem of high-earners hiding their income in companies. It’s a far tidier solution to tax-dodging than the increasingly intrusive and desperate measures investigated by David Parker and Inland Revenue.”

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