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Labour will keep faith on tax policy

2000 web siteLabour finance spokesperson Michael Cullen reaffirmed today that Labour tax policy was only one small increase to personal tax rates.

"We have taken the principled position that any tax increases should be put to the public first. That is why we are being upfront about our intention to introduce a modest 6 cent in the dollar rise in each dollar of taxable income above $60,000 a year. That affects only 5 percent of taxpayers.

"It is also why we have pledged that no recommendation arising from our promised comprehensive review of the taxation system will be implemented without the electorate first having the opportunity to vote on it in the 2002 general election.

"The Alliance has come some distance toward meeting us in guaranteeing no increase in personal income tax below $60,000.

"But it continues to take a more optimistic view than Labour on the amount of extra tax the country is prepared to pay just as Act takes a different view to National on how much health and education spending people are willing to trade away for lower taxes.

"Act's commitment to cutting the top personal and company tax rate to 20 percent would cost billions of dollars in lost revenue and require larger cuts to social services than even most National MPs could stomach.

"For these reasons, National and Act will go into the election campaign with different tax policies just as Labour and the Alliance are. The voters will decide between these polices.

"Both Labour and the Alliance understand that because we both understand how MMP works," Dr Cullen said.

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