ACT’s alternative budget

Act have released their alternative budget. It includes:

• Two tier tax system of 17.5% on first $70,000 and 28% thereafter
• Increase capitation grants to GPs by 13%
• 50% of GST on new homes to go to Councils
• Increase defence spending to 2% of GDP
• Shrink public service back to 2017 levels and index pay to inflation
• Increase super age to 67, and then index to life expectancy
• Index benefits (including Super) to inflation not average wages
• Abolish fees free tertiary subsidies
• Abolish corporate welfare programmes
• Means test KiwiSaver subsidies and Winter Energy Payments
• Abolish four ministries, an office and the Human Rights Commission
• Sell 49% of remaining SOEs and 100% of Landcorp

Their budget is fully costed and balanced.

I’d love to see a top tax rate of 28%, matching the rate for companies and trusts. Also further partial asset sales. The Government now gets more in dividends from 49% of the power companies than it did when it owned 100% of them!