John Key MP
National Party Finance Spokesman

20 September 2006

Cullen lacks credibility on tax cuts

Michael Cullen's effort today to dangle a corporate tax cut carrot to business is without credibility, says National's Finance spokesman, John Key.

"Michael Cullen's record on tax cuts is hardly inspiring. In fact he's spent seven years resisting them, and has been dragged kicking and screaming to the tax cut trough by Peter Dunne and Helen Clark," says Mr Key.

"New Zealanders will be wondering why it has taken years to see the possibility of tax cuts when the Government has been running such huge surpluses.

"The public should be sceptical about what talk of a corporate tax cut actually means. This is the Finance Minister who in Budget 2005 delivered a tiny chewing gum-sized indexation adjustment - for 2008.

"He doesn't believe in tax cuts and never has. His only efforts towards tax cuts so far has been the indexation adjustment.

"The public would also be questioning what Dr Cullen intends to take back to replace the revenue lost from any corporate tax cut. For instance, there is talk of lifting the trust tax rate, which would bring in about $160 million in revenue.

"That's giving with one hand and taking away with the other.

"When it comes to tax cuts, Dr Cullen has no credibility."

ENDS

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