Bill English MP
National Party Finance Spokesman
9 February 2007

Dr Cullen’s new mortgage tax

“Michael Cullen should fix his own high taxing, big spending polices before he levies a new tax on fixed interest mortgages,” says National Party Finance spokesman Bill English.

“Home owners are going to be paying the price for Labour’s big spend-up. Labour needs to tidy up its own backyard before slapping homeowners with a new tax.”

Mr English is responding to Dr Cullen’s proposal to place a mortgage interest levy on all fixed term mortgages in order to cut household spending.

“Dr Cullen has put pressure on inflation and interest rates because of his high taxing big spending policies. In the last monetary policy statement the Reserve Bank described Labour’s fiscal policy as ‘quite expansionary .. offsetting to some degree the moderation in domestic demand’.

“This means the Reserve Bank thinks Labour’s spending is putting pressure on interest rates when households are being more careful.

“And the problem is about get worse, with Labour planning a surge in spending up to the 2008 election.

“The irony won’t be lost on taxpayers. Dr Cullen is proposing a tax on families with a mortgage so they stop spending while he goes on a binge himself. He should practice what he preaches.”

ENDS

© Scoop Media