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Fears of Tax Exodus Unfounded

MEDIA RELEASE for immediate release 29 September 1999

Attn: Education & Political Reporters

Today in an interview by Holmes on Newstalk ZB, Craig Elliss of KPMG Tax Consultants commented on the Alliance's tax policy. He claimed it would take over 12% of high income earners to leave due to tax increases before New Zealand did not make money from them. Various parties have criticised Alliance's tax policy claiming it will not work, as droves of high income earners will leave the country.

It is clear that 12% of high income earners will not leave the country because of such a tax increase. "How many high income earners are going to pick up their families and leave a country because of $6,200 tax increase on a $120,000 income?" asks Mark Baxter Education Action Spokesperson, continuing "Higher tax on high income earners is necessary for the country to fund health and education."

Furthermore, "Where are these people going to go to?" asks Vijayalingam Nellailingam, Education Action Group Spokesperson, continuing "Tax policy such as Alliance's is more in line with the current Australian tax policy. The facts are simple - there is not going to be a huge drain of people fleeing the country due to tax."

"Taxes are a requirement in order to fund social services such as health and education. The injustice of student debt needs to be righted. Substantial numbers of people are not going to flee over a small tax hike. In fact the funding of education will help keep young people in the country. These are the real issues that should dictate the way the election goes." said Andrew Campbell, Education Action Group Spokesperson.

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