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National’s retrograde tax policies

21 July 2005 Media Statement

National’s retrograde tax policies

Finance Minister Michael Cullen says it is now clear that National would unwind the sensible tax reforms of the 1980s and 1990s.

Dr Cullen was anticipating National’s announcement today of tax rebates for student loans following their announcement last week of child care rebates.

“Successive governments removed a whole host of rebates ending with the abolition in 1999 of the requirement to make an annual income tax return.

“National is now moving back in time, reinventing a whole series of tax rebates which will involve much bureaucracy for very little benefit.

“I predict that the next move will be a rebate for health insurance which Treasury has already advised would save less in health costs than the cost of the rebate itself.

“It is surprising that Don Brash, who in the 1980s was one of the architects of New Zealand’s simple GST regime, is now going back before 1984 to recreate a tax system marked by great complexity and great unfairness,” Dr Cullen said.

ENDS

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