Tax cuts even more affordable – and vital

National’s Finance spokesman, John Key, says the latest Crown financial statements prove that tax cuts are affordable by whichever party becomes the Government.

The accounts show that the Government’s operating surplus, at $6.2 billion, is $471 million more than that forecast before the election.

"With the tax take rising almost 10% over the past year, and the Government’s net worth rising by $14.5 billion to $50 billion, this proves what I have been saying all along – that there is clearly room for tax cuts.

“Whichever Government is in power can afford tax cuts and it should move in that direction as soon as possible.

“We need to do this if we are to move forward.

“Our economic growth rate is slowing and is forecast to be 2-2.5% next year.

“If we are to remain competitive and retain skilled and motivated workers, and secure more business investment, then we need a tax structure that encourages and rewards.

“It’s not about hogging the revenue, it’s actually about building a firm foundation from which New Zealand can go forward.

“We need skilled people and companies to be in an environment where they believe they are going to be rewarded for what they are doing,” Mr Key says.

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