Source: Council of Trade Unions – CTU
The tax plan set out by National is propped up with questionable assumptions and untested numbers, say the New Zealand Council of Trade Unions.
NZCTU Economist Craig Renney said the plan has generated many more questions than it answers.
“According to their plan, they will generate $3 billion from foreign buyers, $716 million from foreign casino operators.
“There is no evidence that these numbers are possible, nor how they will be delivered. That is up to $3.6 billion that will need to be found from even deeper cuts to public services.
National also wants to cut spending on items such as free prescriptions, public transport support, and income support for those on the very lowest incomes.
This tax package cuts $2.3 billion of spending on tackling climate change – which protects jobs, incomes, and communities – and then gives $2.3 billion to landlords in tax advantages.
“This shows how out of touch National is on the issues that matter to New Zealanders,” said Renney.
According to IRD, 2.3 million New Zealanders earned less than $44,000 a year, meaning that they will be getting $2.15 a week from this package.
“That’s 56% of all income taxpayers. For them, this is not cost of living support it’s an insult. Meanwhile, those who own multiple homes will be in for billions of dollars of government support.
“There is nothing in this package that supports sustainable economic growth, helps to grow jobs, and there is a real risk that it will simply stoke further inflation and housing speculation.
“We still haven’t seen Nationals plan for how it will fund schools and hospitals. How it will lift children out of poverty. How it will build additional housing for those in need.
“This tax package simply adds more questions on top. It’s not clear the numbers add up, and it’s not clear that National shares New Zealanders priorities.”
