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Dunne on Budget: breaking the tax logjam

Thursday, 19 May 2005

Dunne on Budget: breaking the tax logjam

United Future leader Peter Dunne says he’s delighted that three years of intensive United Future lobbying has paid off in the form of the Budget’s adjustment to the tax brackets.

“Our revenue spokesman, Gordon Copeland, has been bending Dr Cullen’s ear for years about the necessity to stop the erosion of New Zealanders’ incomes because of bracket creep,” he said.

“United Future has also been arguing that the adjustments in the tax brackets should be indexed to inflation and we’re pleased that the Government has accepted that argument.

“But while we’re delighted that we’ve managed to break the logjam in terms of the principles of adjusting tax rates, we’re very disappointed that the Government has lacked the courage to implement these changes as soon as possible.

“We think these changes should take effect from April 1, 2006, not 2008, and we would have shifted the tax brackets even higher.”

Mr Dunne said United Future would be announcing further details of its tax policies at the party’s annual conference in Auckland on May 28.

“In summary, I’m glad the Government has accepted the principles of United Future’s arguments - namely that the brackets should be adjusted and indexed to inflation, but the changes are too small and too late,” said Mr Dunne.

Ends.

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