Bill English MP National Party Finance Spokesman

19 October 2007

NZ in the top half of OECD - for tax!

"Helen Clark has taken New Zealand into the top half of the OECD - for over-taxation," says National Party Finance spokesman Bill English.

Mr English is referring to the latest edition of the OECD's Revenue Statistics, which show Kiwi taxpayers now carry the 13th heaviest tax burden of the 30 OECD countries.

"The number 13 is clearly an unlucky one for Kiwi taxpayers. This is yet more proof that workers are being over-taxed."

New Zealanders pay 37.8% of gdp in tax, the OECD average is 36.2%.

"Michael Cullen keeps trying to pretend Australians pay more in hidden tax. But these figures show it is in the 10 lowest-taxed developed countries."

Mr English says Labour fails to understand that headline personal tax rates are one of the "international neon signs required to attract and retain the talent which New Zealand needs to grow.

"This week's dismal productivity numbers show that New Zealand should be providing better incentives for enterprise and for those who want to get ahead through their own efforts. Personal tax relief is one way of helping to promote that sort of culture."

Mr English says both major parties in Australia have signed up to tax cuts in recent years and that's been one of the factors driving the exodus of Kiwis across the Tasman.

"Dr Cullen once said those people were 'functionally innumerate' and New Zealand was 'better off without them'. On the basis of these OECD figures, it seems they can do the numbers better than Dr Cullen can.

"Michael Cullen can't be trusted on tax. He cancelled the only personal tax cuts he ever proposed, and at the same time he has unveiled record surpluses while signing off on record Government spending.

"New Zealanders shouldn't buy his excuses any more."

ENDS

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