Bill English was right the first time on tax cuts

Bill English was right the first time when he stifled John Key’s dangle of vague tax cut promises, Labour’s Finance spokesperson David Parker says.

“Bill English said before the PREFU that tax cuts weren’t affordable and John Key seemed to accept that, albeit reluctantly.

“Now the PREFU has shown a downturn in growth and tax revenues. The forecast budget surplus under National is forecast to be $500 million a year lower. Tax cuts on the Government’s own figures are even less affordable.

“It’s hard to escape the view that this latest dance is because of the fallout from the stain on John Key’s reputation, caused by the involvement of his office and Judith Collins with Whale Oil. Mr Key is now trying to resurrect his campaign using vague promises of unspecified future tax cuts.

“Bill English has been forced to dangle a carrot of a tax cut which he is plainly uncomfortable with. Last night in the Queenstown debate he would not indicate when or how much, but again ruled out significant tax cuts.

“Labour collects more revenue from a capital gains tax (excluding the family home), and an increase in income tax on incomes over $150,000. Labour has also shown how we cut our cloth in light of the decrease in outlook shown by the PREFU.

“National now needs to show how and when it will fund its promises, which are less transparent.

“National must be upfront and open with New Zealanders, just as Labour has been with its spending and revenue plans,” David Parker says.

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