13 Apr 2009

Tax cuts not wanted if extra borrowing needed - survey

4:34 pm on 13 April 2009

A new survey says two out of every three people do not want tax cuts if it means increased government borrowing.

The study by the New Zealand Business Council shows a majority of people think the latest cut, on 1 April, was not warranted if it was funded by borrowing.

Most of the 2,500 respondents want to see the delivery of the National's promised tax cuts in 2010 and 2011. However, 62% of them say the cuts should be avoided if further borrowing is needed to fund them.

The Business Council says people are concerned the cuts will result in higher interest rates and reduced social services.

Chief executive Peter Nielson says the Government is in a no-win situation.