Colin Craig’s tax figures do not add up and are dishonest 29 Aug 2014
Related articles
- Brownlee Leads Aviation Mission To Shanghai News
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- Budget provides $321m for RS&T activities News
- Licensing To Cut Out Cowboy Advisers Migration
- Government Widens Drought Assistance News
- Young People Take Over Parliament News
- Actions For Young Driver Safety Get Green Light News
- NZ economy expands at fastest pace in two years Business
Media Release
Friday 29 August 2014
ACT Leader Dr
Jamie Whyte
Colin Craig’s tax figures do not add up and are dishonest
“Colin Craig’s tax plan is to have two rates of income tax: 0% up to $20,000 and 25% above that. This will leave a $6.4 billion hole in the budget even before the new spending proposed by the Conservatives. The Conservative tax promises are dishonest” said Dr Jamie Whyte.
“Using Treasury figures, ACT calculated that to get the same revenues with a tax-free threshold of $20,000 the rate above $20,000 would have to be 34%, a significant tax increase for middle New Zealand.
At a Papakura combined churches meeting of candidates on Wednesday, Conservative Party candidate Kevin Stitt made a point of immediately correcting the ACT candidate’s claim that the Conservative Party’s flat tax rate will be 34%. Mr Stitt told the audience that the Conservative Party flat tax rate above $20,000 was 25%. When questioned again on this, he confirmed that the flat rate tax rate was 25%” said Dr Whyte.
“The budgetary mathematics of Colin Craig’s 0% and 25% rates are brutal.
Total taxable income in New Zealand is $143.5 billion. Of this, $54.8 billion is from income below $20,000, from which Craig would collect no tax. All income tax will be levied on income above $20,000, which amounts to $88.7 billion. 25% of $88.7 billion is $22.2 billion. That is how much income tax will be collected on Craig's tax plan.
But income tax today totals $28.6 billion. So Craig's plan will require the government to reduce spending by $6.4 billion
“To fund a $6.4 billion dollar tax gap the Conservatives must slash Super, hospitals and education. There is no other spending that comes near to seven billion dollars.
“The Conservatives promises on tax are either silly or dishonest.
“Even their proposed 25% flat tax increases marginal tax rates for middle-income families already hit over the head by the Working for Families abatement rate of 25%. Many ordinary families and second earners will face an effective marginal tax rate of 50% under Colin Craig’s proposals” said Dr Whyte today.
“ACT was able to produce a fully costed policy using Treasury figures to reduce the top tax rate to 24%, the company tax initially to 20% and then to 12.5% by 2020 in its Alternative Budget Analysis. ACT did this by cutting corporate welfare and cutting middle-class welfare by $4 billion. These tax and spending reforms will boost the growth rate by at least one percentage point: that is, by at least one third,” said Dr Whyte.
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more