Government debt targets ignore private debt

New public debt targets should be balanced with tax cuts to address private debt, says ACT Leader David Seymour.

“Public debt remains relatively stable at just under $100 billion. Meanwhile, private debt is set to breach $400 billion this year. The IMF have already highlighted our private debt levels as a risk to our economy.

“It’s important that the government has a long-term plan to steadily pay down public debt. But when private debt is more than four times worse, the emphasis needs to be on returning government surpluses to households and businesses. The most obvious way is through tax cuts.

“ACT says that debt-laden New Zealanders, such as those struggling to pay off mortgages, deserve the right to pay off their own debt with the money they’ve rightfully earned. That’s just one of many reasons why ACT’s alternative Budget proposals will emphasise substantial tax cuts for businesses and individuals.”

ENDS

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