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ACT's budget more generous than the Government's

Fuseworks Media
Fuseworks Media
Roger Douglas
Roger Douglas

Wellington, May 19 NZPA - The ACT Party has put up an alternative budget which would use $3.1 billion of "government waste" to help fund income tax cuts much more generous than the Government is planning.

Former finance minister Sir Roger Douglas, ACT's finance spokesman, says under his budget people earning up to $14,000 would pay tax at 12.5 percent, up to $48,000 at 21 percent and all those above $48,000 would be on a flat 24 percent.

"If you look over the list of government waste, it is abundantly clear that we live in a special interest state where every special interest group attempts to get their share of the goodies," he said today.

"We have handouts for the racing industry and for corporations, we have massive subsidies for the arts, we pour money into bureaucracy to sponsor Rockquests and implement `NZ Branding strategies' and for `Primary Growth Partnerships' or for the Families Commission to undertake a review of the meaning of `family'."

Sir Roger said most of the waste he had found came from the previous Labour government's "spending binge" and there was likely to be more that could be found before that.

"Trying to grow an economy through government spending is like trying to life a bucket while you're standing in it," he said.

"If people keep more of what they earn, then they are encouraged to gain skills and experience and they are incentivised to work hard."

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