Budget tax burden tipped

Press, 23 November 1987, Page 1

Budget tax burden tipped

By

DAVID CLARKSON

A Government move to tax capital or assets, and an increase in goods and services tax are being picked by the Oppadtton’s spokeswoman on finance, Miss Ruth Richardson. . She predicts also reductions in personal and company tax, but over all, a heavier tax burden on business. . , . , “A maxi-Budget Is certainly in prospect,” she told the Northland Chamber of Commerce and Industry, after trying to get answers on the Government’s economic plans during Parliament’s question time last week. She believes the Family Benefit is likely to be axed in favour of a remodelled Family Support package that functions "essentially as a negative Income tax.” “Also expect a radical reshaping of the unemployment benefit for young people, In favour of a much-needed incentive for postschool study and training.” She expected also a new raft of State-owned enterprises, and an accelerated programme of privatisation. The privatisation plans would, she said, anger the Labour Party’s new president, Mr Rex Jones, while the new wave of corporatisations would “create handy taxing agents for the Government” Miss Richardson also warned of “user-pays with a vengeance.” “Desperate for revenue, the Government is likely to take more out of the hide of both individuals and enterprises with a new round of user-pays. Look out telephone users in particular, and those who rely on services that are currently Governmentfunded.” She described the Royal Commission on Social Policy as “the ultimate in lucky dips.” “The Royal Commission is conducting a lavish extravaganza round the country, inviting all and sundry to engage in the publicly-funded lucky dip. i “Spare a thought for those who are supposed to earn the dollar the Royal Commission is clamouring to spend. “The Royal commission can; only be worth while if it isprepared to address the behavl-: oural costs of a half a century of welfarism, and to put a stop to the poverty of both pocket and spirit that is the legacy of that era.” She said the Market Develop-; ment Board had just issued a. booklet pointing out the particu-; larly high cost structure of New Zealand industry. Struggling with these high costs, New Zealand’s meat industry — the country’s biggest foreign exchange earner — had seen a 20 per cent decline in real earnings during the last four years.