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Women’s Convention right to back income splitting

Media Statement
For immediate release
Wednesday, 10 August 2005

Copeland: Women’s Convention right to back income splitting

United Future finance and revenue spokesperson Gordon Copeland today said that the 2005 Wellington Women’s Convention was right to endorse income splitting as a core family value.

“Like United Future, the Women’s Convention believes that the family should be placed at the centre of life,” said Mr Copeland.

“They then go on to recommend income splitting because it both recognises the value of the work of women within the home and increases their financial security.

“Their reasoning is soundly based. The current system gives a tax rebate for the direct cost of childcare incurred by a family while failing to recognise the indirect cost of income foregone by a parent who stays at home to care for the children, and that’s unfair.

“An estimated 325,000 couples (that’s 650,000 taxpayers) would benefit from income splitting and it would see a couple with children at the average household income level benefit by up to $163 per week.

“Only income splitting has the potential to give couples with dependant children such a meaningful increase, particularly when compared to Dr Michael Cullen’s measly tax cuts - 67 cents a week for most, and then only in 2008.

“No other party contesting this election is offering anything remotely comparable, unless the Nats - when they finally get around to announcing their tax policy - also decide to adopt United Future’s policy .”


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