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Government runs a double standard on taxation

Wednesday, 9 February 2005

Government runs a double standard on taxation

United Future revenue spokesperson Gordon Copeland told Parliament last night that if the government again fails, in this year’s budget, to cut income taxes, then it is clear that it is intent on perpetuating a double standard.

“When it comes to revenue collected by way of excise duties on tobacco, alcohol, and motor spirits,” said Mr Copeland, “the government insists on inflation proofing by increasing the rates in line with the annual increase in the cost of living as measured by the Consumer Price Index.

“However, at the same time, the government has failed to adjust the income tax brackets in spite of the fact that the cost of living has increased by about 13% since April 2000.

“It is a clear double standard and it is not good enough. The people of New Zealand are crying out for a reduction in income tax. The average family is indebted as never before.

“Since Dr Michael Cullen assumed the finance and revenue portfolios he has increased duties, levies, or taxes on seven occasions but we are yet to see an equivalent adjustment to the income tax rates, when it is not only clearly justified but is now way past due.”


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