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So what's gonna give?

John Key MP National Party Finance Spokesman

17 November 2005

So what's gonna give?

"Michael Cullen's given the strongest hint yet that the tax threshold changes promised in the last Budget will be off the agenda if Labour accepts Treasury's advice to sort out the carbon tax," says National Party Finance spokesman John Key.

In Parliament today, Dr Cullen confirmed a review of the carbon tax was under way, as per its agreement with United Future, but he went on to say that if changes were made then 'something has to give'.

Peter Dunne today confirmed any decisions 'would be made at the appropriate time'.

"This is an extraordinary admission from Dr Cullen, who has previously said that revenue from the carbon tax would fund business tax relief.

"Now he's saying those distant and miserly personal tax threshold changes depend on the outcome of the review into the carbon tax. This is a complete about-face.

"United Future has every reason to question Dr Cullen's change of tune. It's only a matter of time before Dr Cullen and the Revenue Minister part ways on the approach to taxation.

"New Zealand businesses and the Kiwi taxpayer deserve consistency and clarity on the direction of tax policy.

"That's now looking increasingly unlikely given the bizarre supply and confidence arrangements that Labour has cobbled together," says Mr Key.


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