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Tax cuts firmly on agenda

“I am very disappointed that Aucklanders won’t see the proposed tax cuts legislated before the election,” said Maungakiekie MP Belinda Vernon today.

Ms Vernon’s comments follow on the heels of Prime Minister Jenny Shipley’s announcement that National is now committed to passing the tax cuts into law after the election.

“National wants to reward two million hard-working New Zealanders by bumping up their take-home pay packets. National will deliver the tax cuts on 1 April, 2000, as promised by Treasurer Bill English in July.”

Ms Vernon said MMP requires compromise and accommodation but not at all costs. National wants to continue to deliver benefits to Aucklanders through tax reductions matched by its dollar for dollar increase in social expenditure.

“National’s tax cuts have substantially benefited hundreds of thousands of Aucklanders over the past three years. Since 1996, the middle-income tax rate has fallen from 28 cents to 21 cents. On April 1 we will see the tax rate for those earning between $9,500 and $40,000 reduce to 20 cents.”

The Maungakiekie MP said in addition to the middle tax rate falling, the level at which the middle-income tax rate kicks in has increased, and the tax scale is to be simplified.

“Over coming months, tax is going to be a key point of difference between National and Labour. Aucklanders need to know that Labour would suck $756 million out of the Auckland region through extra taxes to meet the cost of their promises.”

“Labour Party promises of over $2.9 billion will cost over $1,871.00 per household. Labour’s hands will be in Aucklanders’ pockets.”

“Come election time Aucklanders will be able to choose whether they want to spend more of their hard-earned money – or whether they want the Labour Party to spend it for them,” said Ms Vernon.


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