Income-splitting means $45 a week
Wednesday, 3 November, 2004
Dunne: Income-splitting means $45 a week to average family
United Future leader Peter Dunne today called on the Government to introduce income-splitting for families where one parent is caring for their children full-time or only working part-time, saying a family on $55,000 a year would be $45 a week better off.
"This is about putting families first and making sure those who choose to have one parent staying home and looking after their children are not punished financially for making that choice," he said.
A family with income of $75,000 would be about $75 a week better off, Mr Dunne said.
"And any family raising children today can really do with that extra money," he said, after raising the issue in Parliament this afternoon.
"For tax purposes, the income of both parents is combined and then divided equally between them which can mean that the pay less tax as it is levied at a lower rate.
"It is simple, effective and it puts families first.
"For too long New Zealand financially punished couples who are committed to raising their own children. It's utterly wrong that they should be disadvantaged for being committed parents.
"And as the family party, United Future is going in to bat for families on this one.
"Family incomes will be a defining issue at next year's election.
"The Working for Families programme has been a good start in boosting low to middle income household incomes for about 300,000 families, but now is the time to move further up the income scale as well, and especially look at the second income earner in a family as well," Mr Dunne said.