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Dunne reassures PSA over tax plans

Media statement
For immediate release
Monday, 9 June 2008

Dunne reassures PSA over tax plans

UnitedFuture leader Peter Dunne is reassuring the Public Service Association that his party’s plans for a simpler, lower tax structure won’t be funded by cuts to public services.

The PSA today demanded to know what the effect would be on the public service if UnitedFuture’s policy of taxing income up to $12,000 at 10%; income between $12,001 and $38,000 at 20%; and income above $38,000 at 30% were implemented.
Mr Dunne responded “The short answer is none at all.

“Most of the annual cost (approx $3.9 billion a year) is already banked as a result of this year's Budget tax cuts.

“The remaining $600 million (income splitting, reducing the trust rate, and abolishing gift duty) would be phased in by 2011/2012.

“These changes would be not be funded at the expense of public services,” he said.


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