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CTU wants Government to re-jig tax cuts


01 December 2008

CTU wants Government to re-jig tax cuts

The Council of Trade Unions is calling on the incoming Government to re-jig their tax cut proposals to provide a more balanced package.

Peter Conway, CTU Economist, says that “under the Government’s proposals a worker on $20,000 a year will pay $300 a year more tax in 2010 than what is set out in current legislation whereas someone on $500,000 a year will pay $9,202 less tax. This is unfair”.

“A two-child low income family where the parents work 50 hours a week to earn $50,000 will also pay more tax of around $300 a year by 2010 whereas the high income family earning $120,000 in the same circumstances will pay $900 a year less tax.”

Peter Conway said that the CTU realises the Government is committed to a certain level of tax cuts but there is still time to make it a more balanced package.

The CTU notes that the National Party and ACT have agreed to catch up with Australian income levels by 2025. Peter Conway said he presumes that this is an ambition for all New Zealanders not just those on top incomes. If the first piece of legislation by this Government is to make those on low incomes worse off; that is not a good start, he said.


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