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Inequality up under National


Spokesperson for Finance
19 May 2013                                                             MEDIA STATEMENT

Inequality up under National

Bill English can try to rewrite history all he likes, but the truth is that inequality is getting worse under National and Thursday’s Budget does nothing to fix that, says David Parker, Labour’s Finance spokesperson.

“Both income and asset inequality have worsened under the current government, and will continue do so.

“On Q&A this morning, Bill English desperately tried to deflect criticism of rising inequality by trying to push the blame on to previous governments.  But no amount of spin and denial can cover up the current Government’s record of rising inequality.

“National’s 2010 tax cuts put $2.25 billion into the hands of top of income earners – that was 40% of the total tax cuts package to the top 10% of taxpayers.

“One in five Kiwi kids are now living in poverty.  Two out of five of them are in working families thanks to National’s low-wage economy,

“Home ownership rates are in decline, as prices rise beyond the reach of many.  National has sat back and watched house prices rise by 36% since John Key become Prime Minister – and yet the Government still refuses to consider a capital gains tax to discourage property speculation.

“In contrast, income inequality reduced under the last Labour-led government, in large part because of Working For Families tax cuts for children with families (which National opposed and John Key called communism by stealth).

“Labour lifted 200,000 children out of poverty. National is doing the reverse. Under Bill English and John Key the wealthiest get ever wealthier at the expense of the rest of New Zealanders,” says David Parker.


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