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Union would be better calling for bold tax cuts

Union would be better calling for bold tax cuts

ACT Leader Rodney Hide today said his party’s proposed tax cuts would deliver more into the pockets of workers than the five percent pay increase the country’s largest union is demanding for its members.

Mr Hide's comments follow the Engineering, Printing and Manufacturing Union announcing that it will not settle any wage agreements for less than a five percent pay rise.

ACT is proposing to drop the top and business tax rate to 25 cents in the dollar and extend the 15 cent rate up to $38,000. As a result someone on $40,000 a year would be $35.86 better-off a week while someone on $60,000 would be $66.55 better-off a week.

“ACT’s tax proposals are in fact equivalent to a seven percent pay-rise for the average worker under the present tax regime.

“Tax cuts are the best way to boost workers’ pay packets and help them pay off debt. The Union should be putting pressure on the Labour Government, not employers. It is the Government that is awash with cash, thanks to hardworking New Zealanders paying too much tax.

“Households are no better off since Labour came to power. Any wage increases have been wiped out by increases in taxes and prices. Households are sick and tired of being squeezed.

“It’s time for Labour to hand back something to the workers who have created consecutive record-high government surpluses.

“The best way to boost pay-packets is to take less off hardworking New Zealanders to start with,” said Mr Hide.

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