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Growing gap between rich and poor hurts all Kiwis

Friday, 29 July 2011, 10:20 am
Press Release: New Zealand Labour Party

Growing gap between rich and poor hurts all Kiwis

It's a terrible tragedy that some Kiwi parents are having to send their children to school hungry at a time when the richest New Zealanders are enjoying a big boost to their financial fortunes, says Labour Leader Phil Goff.

Phil Goff's comments follow news today that the top 150 New Zealanders on the NBR Rich List have experienced a 20% increase in their wealth in just one year.

"This isn't about envy. It's great to see some Kiwis doing so well for themselves. I congratulate them on their good fortune. But it's not right that while some are doing so well so many other New Zealanders are struggling to survive.

"Our society is becoming more unequal. While the rich are getting richer, middle and low-income families are struggling to put food on the table, petrol in the car and to heat their homes.

"Many of those on the Rich List will have made their fortunes from capital gains that have gone untaxed while the average working Kiwi got a below inflation pay rise of 1.9% and they pay tax on every dollar they earn.

"That's wrong. It's not fair.

"National isn't helping New Zealanders feeling the financial squeeze. Instead, it's borrowing billions of dollars a year to give tax cuts of more than $1000 a week to the country's top earners while those on lower incomes get virtually nothing.

"That's wrong. It's not fair.

"Labour's economic plan will ensure everyone pays their fair share.

"We'll ask those earning the most to pay a little more.

"We'll ask those who make their living from speculating on property and other assets to pay tax just like workers earning wages and salaries do.

"We'll allow all New Zealanders to earn the first $5000 tax-free - that'll give couples an extra $1000 in the pocket every year.

"We'll remove all the GST off fresh fruit and vegetables so those finding it tough can still afford healthy food for their family.

"National is creating a society where the gap between the rich and the rest of New Zealand is growing.

"Labour's plan is about fairness and helping all Kiwis get ahead."

 
 
 
 
 
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