People who go to work every day to provide the goods and perform the services essential to keeping our economy functioning, deserve to be the priority. Not a government that has traditionally removed from them their efforts through taxes and then promised them a portion back in exchange for their votes.
The Banks, especially the big 4 banks are the biggest drain on our overall prosperity. They are the ones that create our new money by relying on people and companies borrowing that money into existence. Most of it is borrowed to pay old debt, around $33 billion a year in interest alone. Governments rely on the banks lending more so that they can tax us at ever increasing rates.
The answer is a lower and fairer tax system. With more of our money in our own pockets we can help break that alliance.
New Zealand's big four banks' profits have increased at three times the rate of the country's gross domestic product (GDP) over the past 10 years. According to the Reserve Bank, ANZ, ASB, BNZ and Westpac made a combined $4.9 billion, after tax, in the year to December 31, 2017.
- We will reduce government expenditure across the board by 10%, we will force them to live within our means, not theirs.
- We will impose a Major Bank levy on the 4 Major Australian Banks similar to that introduced by the Australian Government in 2017. The 4 banks are recording record profits and make more profits than the 8 biggest power companies combined.
- We will limit the amount of interest able to be charged by pay day lenders and others in that industry to the official bank overdraft rate. We will protect the vulnerable from extortionate rates of interest.
- We will introduce a simple tax system which is designed to help every Kiwi, especially those on lower incomes. Our policy does away with the unfair and unwarranted secondary tax imposition. If you work multiple jobs you will be taxed at the rate of the total that you earn.
|$25,000 to $100,000||15%|
|$100,000 and Above||20%|
|Repatriated Profits Tax||40%|
- As part of our measures to pay for these tax cuts we will phase out Working for Families, as families will already benefit from less tax.
- Restrict government budget to a percentage of GDP. If the public must live within their means so should a government.
- Government should be forced to consider the composition of its spending rather than expanding it to ensure taxpayers receive the maximum benefit for the taxes they pay.
- Encouraging higher individual savings by eliminating tax on long-term interest i.e. 5 years or more, because the saving rate determines the steady-state levels of capital and output.
- Reduction in business tax to encourage capital formation to increase after-tax return on investment.
- Accelerated depreciation allowances in line with international trading partners to foster upgrading of business infrastructure to raise efficiencies.
- Reduction in government regulation to shape a free competitive economic landscape for business to thrive.