Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Government backtracks on tax promise

Government backtracks on tax promise

National's Finance spokesman Don Brash is slating the Government's failure to deliver on its promise to shield most New Zealand taxpayers from tax hikes.

In Parliament today, Dr Brash attacked the Finance Minister on tax, pointing out that the number of taxpayers who face the top personal tax rate of 39 per cent is more than twice what Labour promised in its 1999 election campaign.

"Labour said only 5 per cent of taxpayers would be affected by any tax increase. The reality is nearly 300,000 New Zealanders - 19 per cent of fulltime workers and 10 per cent of the total number of taxpayers - are hammered by the 39 per cent rate.

"The only way Dr Cullen would get his 5 per cent figure would be to shift the top personal tax threshold to $80,000."

Dr Brash says the Government's miscalculation on taxpayer numbers clearly strengthens the argument for cutting the top personal tax rate.

"It is patently wrong that a person earning $100,000 with a dependent spouse and two children under the age of 13 effectively pays a thousand times as much income tax as somebody in the same family circumstances who earns $25,000.

"That hardly gives entrepreneurial and hardworking New Zealanders the incentive to grow their businesses and invest.

"When you add in the Government's other "taxes" and "levies" - the sherry tax, petrol taxes, the proposed energy tax, Kyoto tax and planned changes to gaming duties - the election promise of protecting "95 per cent of taxpayers" has a very hollow ring to it," says Dr Brash.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news