Source: Taxpayers Union
26 AUGUST 2020FOR IMMEDIATE RELEASEResponding to the release of Stats NZ data for the June quarter denoting that median incomes fell by 7.6 percent, New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says:“The last time we saw a fall like this was the Global Financial Crisis. Back then, Britain made a temporary cut to its Goods and Services Tax equivalent as a tool to boost people’s spending power and stimulate the economy. We’re calling for New Zealand to use the same measure now to stimulate its economy.”
“Not only would this tax cut offset the majority of consumers’ lost income, it is also more appropriate in the current economic environment. Unlike in 2008, interest rates are currently next to nothing. This means an alternative to monetary policy changes, like a temporary GST cut to bring forward consumption spending, makes even more sense.”“Cutting GST is more efficient than increasing Government spending, and doesn’t ‘lock-in’ deficit spending for years to come. ”The Taxpayers’ Union briefing paper on a temporary cut to GST is available at https://www.taxpayers.org.nz/gst_cut
