Asset Sales Fund Tax Cuts
The Green Party is claiming that the national assets sales are a means of funding tax cuts for the highest-earners in the country.
In a press release issued on December 2nd the Green Party has claimed that the revenues raised in the recent sale of national assets has yielded less revenue than the tax cuts provided to top earners over the last few years.
According to the Green Party, since 2009 and 2010 when the top marginal tax was cut from 39 percent to 38 percent, and from 38 percent to 33 percent respectively, the cumulative reduction in tax collections from the top 10 percent of earners is nearly NZD 4.5 billion.
Conversely, the projected revenues from the sale of government-owned assets is expected to only reach NZD 3.9 billion.
In the statement the Green Party Co-leader Dr Russel Norman explained the situation, saying “…National isn’t selling our assets to pay for schools and hospitals; they’re flogging them off to fill a hole left in the budget by the tax cuts that they gave the top 10%.”
Photo by Simon Oosterman