Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Tax cuts strengthen economy, promote fairness

Wednesday, 1 October 2008

Tax cuts strengthen economy, promote fairness

The first phase of the government's personal tax cut package will deliver tax cuts of between $12 and $28 a week for full-time workers, delivering some relief for households hurt by skyrocketing global commodity prices this year, says Finance Minister Michael Cullen.

"The Labour-led government's three year tax cut programme, which starts to take effect from today, was designed to both strengthen the economy while promoting fairness in society,"Dr Cullen said.

"The three phase tax cut package is locked into place by law which means that people have certainty not only for the tax cuts that take effect from today, but also for the tax cuts that by law take effect from April 2010 and then from April 2011,"Dr Cullen said.

The package, at full implementation, will cut personal taxes by roughly one quarter at the current full-time minimum wage, by one sixth at the current level of the full-time average wage and by about one eighth at $80,000 a year.

"I am confident that the Government of the United States will soon reach an agreement to restore more confidence in global credit markets. It is vital to the world economy, and to New Zealand's economic outlook, that that confidence be restored.

"We have come through a challenging first half of the year and New Zealand is back into positive growth starting in this December Quarter. The government's $10.6 billion personal tax cut programme will counterbalance some of the dark clouds affecting overseas markets," he said.

"New Zealanders can be proud that we have come through a mild recession with our unemployment rate still very low compared with most other developed countries and with the financial accounts of the Government very strong compared with many other countries, although weaker than they were earlier in the year," Dr Cullen said.

The personal tax cut package comes on top of the $4.6 billion worth of tax relief the government has introduced since 2004, including Working for Families, KiwiSaver and business tax reform.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog