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Labour's tax take - eight years of broken promises

Bill English MP National Party Finance Spokesman

2 December 2007

Labour's tax take - eight years of broken promises

Revelations that 150,000 more workers are now in the top tax bracket than when Labour took office are just further proof that this Labour-led government cannot be trusted to deliver to long-suffering taxpayers, says National's Finance spokesman, Bill English.

"When Labour was elected in 1999 they promised that there would be no tax rise for those earning less than $60,000 and that the new 39 cent tax rate would only affect 5% of taxpayers.

"The truth is, workers have paid an extra $1.7 billion tax since Labour took office even though rates haven't changed.

"Far from not paying any extra, every taxpayer in New Zealand has paid more than $500 extra in personal taxes since 1999.

"Labour played the politics of envy when it endlessly repeated that only the wealthiest 5% of taxpayers would be affected by the tax increase.

"The country's nurses, police, teachers and plumbers are now among the 150,000 more taxpayers in Labour's despised 'wealthy' category, and they're paying through the nose for it.

"Michael Cullen had the chance to give some relief after the 2005 election, but he couldn't even see fit to offer a 'chewing gum' tax break.

"This Labour-led government has absolutely no credibility where tax cuts are concerned.

"They have broken both promises they made on personal taxes.

"Taxpayers will be reminded again just how hard they have worked to pay for Labour's large surpluses when surplus figures are released again before Christmas."

ENDS


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