The Conservative Party in the UK has ditched its inflationary tax cuts, and the National Party should do the same.
The Reserve Bank has increased the Official Cash Rate today by 50 basis points to 3.5% in an effort to slow inflation.
“Cutting tax for the richest few is wholly irresponsible, especially at a time when costs for most families are going up,” the Green Party’s finance spokesperson, Julie Anne Genter said.
“People should look to the UK Conservative Party for a sense of what could happen if the National Party got into power here. It should be a cautionary tale for us all.
“The difference between the UK Conservative Party’s tax cuts and National’s tax cuts is paper-thin.
“Of course the UK and New Zealand economies have been designed differently but people will not miss the basic point - unfunded tax cuts for the richest few do not work.
“The National Party’s ongoing defence of its proposed tax cuts is incoherent.
“For a start, when costs are rising for most families, throwing tax cuts into the mix could push inflation up even higher.
“This would put pressure on the Reserve Bank to raise interest rates further, which would mean unemployment would likely increase and our economy harmed.
“People also get the fact that it is impossible to cut taxes without taking a hammer to our public services.
“The previous National Government will live long in the memory of our teachers, nurses, aged carers, social workers, doctors, firefighters, and other essential workers.
“Most I’m sure look back on that nine year period and see the familiar pattern of neglect that accompanies every National Government - and it looks like Mr. Luxon will be no different.
“The Green Party will continue fighting for a fair tax system where the wealthiest pay their fair share of tax so we can fund strong public services and ensure those with the least have enough to live on” says Julie Anne Genter.