“The ACT party welcomes the government’s pushback on changes to the tax system,” said Damien Smith, ACT’s associate finance spokesman.

“The government claimed that people would use commercial structures to avoid its new 39% tax rate and proposed changes to the tax system. Now he has quietly delayed those changes.

“The Inland Revenue says it has a number of concerns about the Labor Party proposal as it would unfairly capture people who were not trying to avoid paying tax.

“He should just completely dump those changes. It was insulting to individuals to use business structures to manipulate payment of the highest tax rate.

“The 39-cent envy tax has always been a bad idea.

“The ACT is the only party in Parliament that has been completely clear on the issue of taxation.

“We will repeal all taxes proposed by Labour, we will abolish the national capital gains tax in the clear line test, we will reduce the marginal tax rate from 30% to 17.5%, we will reverse the 39% tax rate and we will reverse the government’s change to interest deductibility.

“ACT means real change, our proposals would give someone a $2,000 tax cut on the average wage.”

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