Low income employees hit as hard as high earners
64% FBT triggers huge costs to Business
Labour’s Dr Michael Cullen has dented Labour’s credibility with ordinary workers by pushing the FBT rate to 64%, says National’s Revenue Spokesperson, Annabel Young MP.
“The 64% tax hits all people in jobs, regardless of income. All workers face the possibility of losing their fringe benefits because they now cost much more to provide. People on low incomes need to know that the Labour Party has hit them with this as a Christmas present.”
Annabel Young predicts that the renegotiations of contracts to remove benefits will trigger industrial strife across the whole workforce.
“The employer will not be able to provide the same package for the same dollars because the tax cost has just leapt up.
For the same dollars, the employer will be able to afford less. Unhappy workers on lower remuneration because of tax increases are a recipe for strikes and lost productivity.”