15 October 2005

Borrowing for tax cuts makes no sense

Bill English’s admission in the Sunday Star Times that National will borrow to fund tax cuts is fiscal lunacy, Progressive leader Jim Anderton says.

The Star-Times reported in an interview with Bill English that he said “There is nothing wrong with borrowing to invest in infrastructure such as roads.”

“Mr English is attempting a sleight of hand,” Jim Anderton says.

“Borrowing to fund new roads with one hand, while giving tax cuts with the other hand, is the same as borrowing to pay for tax cuts because, without tax cuts there would be no need to borrow for roads.

“There is a case for a middle income tax cut in the next few years, to go with the substantial tax breaks low income families received through Working for Families. But it makes no sense at all to borrow and sell assets to pay for tax cuts.

“National has now announced three policies – selling assets, putting up doctors’ fees and now, borrowing against our future. In other words, selling the family silver, as well as taking from the sick and from our children, to give tax cuts today,” Jim Anderton says.

ENDS

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