Bill English MP
National Party Finance Spokesman

26 March 2008

Cullen in ‘defiant squirming’ over tax cuts

“Michael Cullen's defiant squirming over his failure to deliver personal tax cuts over eight years of plenty comes just before April 1, when his last promised tax cuts would have started - if he hadn't cancelled them.”

National Party Finance spokesman Bill English is commenting on a speech today by Michael Cullen in which he continued his now farcical defence of the over taxation which has taken place on his watch.

“The ‘chewing gum’ tax cuts were promised in the 2005 Budget to start on 1 April 2008. After Labour was re-elected, Helen Clark and Dr Cullen cancelled the only personal tax cut on offer in nine years of a growing economy.

“It turns out Labour was saving up taxpayers’ spare dollars to buy back the railways.

“Economic confidence has dropped sharply as households now face up to the costs of eight years of mismanaged growth.

“Just last year Labour sacrificed taxpayers and homeowners in a record spending Budget, booking up $3.7 billion against future Budgets.

“Dr Cullen knowingly increased his government’s spending ahead of forecasts, despite concerns about higher interest rates, the slow-down in productivity growth, and a persistent current account deficit.

“Sound economic management has gone out the window - Labour is committed to spending every dollar it has saved up to buy the votes of people who have been overtaxed to pay for it. Households under pressure will get the crumbs after Labour has had a feast.

“Labour forgets that the money doesn't fall out of the sky. New Zealanders are sick of running overdrafts to finance Labour’s election campaign.”

ENDS

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