Labour Supports Flat Tax

Rodney Hide

Monday, 16 October 2006 Press Releases - Economy

The Labour Party is taxing its own MPs a low, flat rate of 5% to repay election spending, but is pursuing a less fair policy for working New Zealanders, says ACT Leader Rodney Hide.

"Helen Clark's support for flat tax is surprising, and somewhat encouraging, even though it's limited to her own caucus", Mr Hide said.

"At the same time as effectively imposing a flat rate of tax on their own MPs, Labour is talking about shifting the income tax thresholds for working Kiwis.

"What hard-working New Zealanders actually need are lower, flatter taxes across the board.

"Shifting income thresholds just shifts the burden of high taxes. Last week's surplus shows that Labour can afford to abolish the 39c top rate and cut the other rates.

"As Labour's own example shows, flat taxes still mean that people who earn more money pay proportionately more tax.

"If a flat rate is good enough for their MPs and Ministers, the Labour Government should be working towards flat taxes to fund legitimate government spending too", Mr Hide said.

ENDS

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