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Overtaxed New Zealanders have earned a refund

John Key MP National Party Finance Spokesman

30 August 2004

Overtaxed New Zealanders have earned a refund

National Party Finance spokesman John Key says figures that show the Government's tax take has increased by 40% since Labour took office is further proof that New Zealanders are being overtaxed.

"Companies and individuals are paying a significant amount more now. It makes a mockery of Labour's pledge card promise that there would be no tax increases for most of us," says Mr Key.

According to figures broadcast on last night's One News, companies have paid almost 72% more tax, individuals 35% more, and the total tax take now stands at $46 billion - a rise of almost 40%.

"Michael Cullen is dead right when he says more people are working and paying tax, but National believes all workers have earned a tax refund," says Mr Key.

Figures released by the Employers and Manufacturers Association highlight part of the problem. 'Since June 2000 the state sector's wage and salary bill funded by the taxpayer has gone up 32 per cent to reach $2.5 billion, an increase of $620 million a year.'

"If it didn't waste money on things like Budget propaganda, growing bureaucracies, and social programmes of dubious quality, the Government would be able to return a better dividend to those who generate the wealth.

"Under Labour many New Zealanders are being forced to tighten their belts. The Government should apply the same standard to itself," says Mr Key.

ENDS

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