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Labour Breaks Credit-Card Pledge - ACT

Labour Breaks Credit-Card Pledge Under Urgency

ACT Finance spokesman Rodney Hide today said the government's tax-hike legislation broke Labour's credit card pledges.

"Helen Clark gave only seven commitments and has broken commitment seven twice over in the first week under urgency.

"Commitment Number seven is, "No rise in income tax for the 95 percent of taxpayers earning under $60,000 a year". This was Helen Clark's "Commitment to You". She told voters before the election, "We will deliver".

"But Helen Clark's new government is in Parliament the day before Christmas eve, under urgency, in their first week office, breaking this commitment.

"The Treasury's Pre-Election Fiscal Update shows that 7.2 percent of taxpayers pay over $60,000 a year. For the year tax year 2000/2001, Treasury say there will be 2,827,000 taxpayers with 203,000 paying $60,000 or more.

"The tax hike is far more punishing than Labour's commitment.

"On top of that, taxpayers under $60,000 will have their fringe benefits like cars, health plans, and super schemes taxed at the new higher rate rather than the old rate of 33 cents. So taxpayers earning under $60,000 will suffer a tax hike.

"One week into Office, and already Helen Clark's credit-card commitments aren't worth the plastic they are written on," concluded Rodney Hide.

ENDS

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