Parliament

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

 

Working for Families package beats tax cuts

9 June 2004 Media Statement

Working for Families package beats tax cuts any day

The government’s $2.75 billion Working for Families package boosts the incomes of working families more than any tax cuts package ever could, says Social Development and Employment Minister Steve Maharey.

Speaking at a post-Budget forum hosted by the Wellington People’s Centre this evening, Steve Maharey said it was time for those political parties advocating tax cuts to admit that slashing taxes would benefit single people and couples without children on high incomes – and would make no real difference to the weekly earnings of low-and-middle income working families.

“Tax cuts are not the solution for working families struggling to raise their children. They are a very blunt instrument and put most cash back in the pockets of those who need it least.

“That’s why the Working for Families package delivers, in effect, targeted tax cuts by using the existing Family Support system to significantly boost the weekly incomes of working families with children. Families start gaining in October, with substantial gains from Family Support changes beginning next April.

“For example, a two-parent single-income family with four children earning $55,000 will gain an extra $150 per week from the Working for Families package. Tax rates would have to reduce to a flat rate of 9-and-a-half cents in the dollar to boost their income by the same level. Even Act is only currently advocating taxes being cut to 18 cents in the dollar, with cuts to essential family services to pay for them.

“Other families do not even pay enough tax for tax cuts to deliver equivalent benefits to the Working for Families package. For example, a two-parent dual income family with two children earning $37,440 will gain an extra $160 per week from the package. Because they currently pay $140.24 per week in income tax there is no way to reduce the tax they face to ensure they gain the same or more income.

“It’s very plain that, when National and Act advocate cutting taxes, families are at the bottom of their priority list. This government puts families at the top of its list – that’s why well over half (61 per cent) of all families with children will benefit from the Working for Families package,” Steve Maharey said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

CPAG Report: The Further Fraying Of The Welfare Safety Net

New Zealand’s welfare system has undergone a major transformation during the past three decades. This process has seriously thwarted the original intent of the system, which was to provide a decent standard of living for all New Zealanders in times of need...

In 2017 it is not unusual for families to be living in their cars, in garages, or in substandard boarding houses. Food banks are unable to meet the soaring demands from not only beneficiaries but, increasingly, the working poor. Private charities, such as KidsCan and Variety, are overwhelmed by the demand from poor families for basic necessities. More>>

ALSO:

 
 

Risks & Adaptation: Cheaper To Cut Emissions Than Deal With Climate Change

The cost of climate change to New Zealand is still unknown, but a group of experts tasked with plugging the country's information gaps says it will likely be significant and it would be cheaper to cut greenhouse emissions than simply adapting to those changes. More>>

ALSO:

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages