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Families Are the Losers Again

Families Are the Losers Again

The latest labour cost and Consumers Price Index figures show that working families are worse off today than they were a year ago, ACT Family Spokesman Heather Roy said today.

"Today's Statistics New Zealand figures show salary and wage rates rose by 2.2 percent in the year to September. But over the same period, the Consumer Price Index has risen by 2.6 percent, leaving working families 0.4 percent worse off than a year ago.

"In the 1950's and 60's families contributed a quarter of their income to the state in the form of tax. Today the figure is approximately 40%. This means that merely to tread water, families must increase their income to make ends meet. Partners who previously chose to stay at home to raise a family now have to find work to contribute to the family income.

"By raising taxes the government makes it more and more difficult for families to move ahead. The only winner from increased inflation is the Government, as average working families are dragged into higher tax brackets.

"Over the past three years, we've seen entrenchment because wages and salaries have failed to keep pace with inflation since Labour came to power.

"The sinister erosion of families' real income is becoming a pattern. This is set to become worse as Dr Cullen has loosened the Reserve Bank Act agreement.

"ACT is the only political party fighting to raise the real incomes of working families through lower taxes, low inflation and higher economic growth," Mrs Roy said.

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