Tax Cuts will Help Economy
The year is whizzing by as we approach Easter. It’s been a very busy period for the National Government as we have rolled out our 100 day plan and introduced policies that aim to take the sharpest edges off the economic situation we find ourselves in.
On 1 April we delivered tax cuts to stimulate the economy by putting more money in people’s pockets to spend, invest or reduce debt. This is an important step towards the Government's goal of delivering a tax system that rewards effort and provides better incentives to get ahead. The average wage earner on $48,500 will receive $18 a week more in their hand.
We also wanted to reward a group of hard-working low and middle-income people who received very little under Labour and have battled hard to get ahead. The National Government has introduced a new Independent Earner Tax Credit, giving $10 a week to those earning between $24,000 and $44,000 a year who do not receive a benefit, Working for Families tax credits or New Zealand Superannuation.
As a result of the tax cuts, the large number of retirees who make up 23% of the Otaki electorate will also benefit from an increase of up to $13 a week in their NZ Super or Veteran’s Pension payments starting last week.
Small and medium sized businesses are also going to benefit from a range of initiatives making it simpler and less expensive to pay tax. Companies can keep their money longer, reduce the interest they pay on underpaid tax and cut compliance costs.
I’m delighted that Kapiti and Levin are included in the recently announced programme of ultra fast broadband into our region. This will help transform how we communicate around NZ and with the rest of the world.
There are exciting times ahead.
I trust you all have a happy and safe Easter.