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National Tax Cut Proposal Benefits The Rich

National Tax Cut Proposal Benefits The Rich And Sends The Wrong Signal

“It is disappointing that Bill English has adopted the tired old National Party strategy of the 1990s by promising tax cuts for the rich,” Council of Trade Unions president Ross Wilson said today.

“It is no surprise that the National Party is promising tax cuts for employers and those on the highest incomes,’ he said.

“We have seen this all before. Unfortunately it is those on low incomes who will miss out.

“It also sends the wrong signal to business. What is important for firms is to focus now on adding value rather than constantly calling for lower taxes”.

Ross Wilson said that New Zealanders were still suffering from the tax cuts of the last decade which favoured those on high incomes, resulted in benefit cuts for those on low incomes, and led directly to the huge pressures on health and education spending.

“We are not reassured by Mr English’s claim that tax cuts will be funded through removing the prefunding of superannuation,” he said.

“It is vital that some provision is made to ensure that at least the current level of entitlement that superannuitants get can be preserved for current workers when they retire.”

Ross Wilson said the CTU supports superannuation prefunding provided it is phased in without a damaging impact on other important areas of expenditure.


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