Greater encouragement for workplace savings
For immediate release
Wednesday 18 February 2004
Government must give greater encouragement for workplace savings
Although welcoming the Government’s new state sector savings scheme and the appointment of AMP as one of the providers, Gordon Copeland, United Future’s finance spokesperson said today that Government is continuing to neglect a “level playing field” tax regime for long term savings.
“The plain fact is that a flat 33% tax rate on people’s earnings on their retirement savings schemes continues to discourage the very goal which Government says it is trying to achieve.”
Mr Copeland noted that fully 74% of all taxpayers have a marginal tax rate of 21% or less.
“Accordingly I believe that Government’s actions, although good in themselves, will amount to little more than lip service until they squarely remove the 12% over-taxation position.
“If that’s not a positive disincentive then I don’t know what is. It’s time to get real and Government risks losing credibility on this issue unless it acts in this year’s Budget,” said Mr Copeland.