PRESS RELEASE

FOR IMMEDIATE RELEASE
Budget 2009

Libertarianz Party Alternative Budget

Libertarianz Finance spokesman Nik Haden today released the Libertarianz Party Alternative Budget for 2009. “We are continuing to offer a substantial reduction in the tax burden, offset by a realignment of state priorities towards the proper role of the government.” said Mr Haden.

“The economic recipe for financial success isn’t any different to before the financial crisis, so our essential message remains unchanged. Just as individuals cannot for long continue to spend more than they earn, neither can governments. A responsible approach to economic management is the best stimulus package as it gives people confidence that they won’t be saddled with debt in the future.”

“The highlights of our budget are that the first $50,000 of everyone’s income would be tax-free and that GST would be abolished. This would deliver a substantial boost to the economy by significantly increasing individuals’ spending power. While there would be significant reductions in government spending, individuals will always know best how to spend their own money so such spending will necessarily be of higher value and more productive than when the government tries to do it for them.”

“Unfortunately, I don’t have much confidence that Bill English will take up these ideas in his budget to be released later today. However even if he isn’t prepared to make the significant tax and spending changes that are so urgently needed there is at least one thing he could quite reasonably commit to. The current Treasury forecast for the year ended June 2009 shows a small net positive net Crown cash flow. This shows that the Crown’s finances aren’t too bad, although recent economic events will push this balance negative in the short term. What it does indicate though is that there is no need for the Crown to take New Zealand further into debt. All that is required is that Bill English not let the government commit to any more expenditure. If expenditure could be capped overall such that any increases were offset by decreases elsewhere, we won’t have to ask our kids to subsidise our current lifestyle.”

“This outcome would fall a long way short of being ideal, but would be a good target for the Minister of Finance to aim for,”concluded Mr Haden.

An executive summary of the Alternative Budget is available here .

A video explaining the Libertarianz budget highlights from last year can be found at www.libz.tv

For more information, see www.libertarianz.org.nz or contact:

ENDS

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