Mana applauds the Prime Minister’s proposal for tax cuts

Mana Economic Justice Spokesperson John Minto tonight applauded Prime Minister John Key’s announcement that future budgets would have tax cuts.

“Mana wants to cut taxes for families on low and middle incomes who are doing the heavy lifting for the economy.”

For a start Mana would –

· Abolish GST – a nasty tax on low-income families (the poorest New Zealanders pay 14% of their income on GST while the richest pay less than 5%)

· Abolish tax on the first $27,000 of income from wages or salaries

These tax cuts would be offset with taxes on unproductive sectors of the economy which are not only distorting and damaging but are largely untaxed.

Mana would introduce –

· A Hone Heke Financial Transactions Tax on currency speculators

· A robust capital gains tax

· An inheritance tax on estates valued over $500,000

Over the past 30 years the tax burden has been shifted from the wealthy and the corporate sector to wage and salary earners through income tax cuts and GST increases.

“The reality is that most of the richest 1% don’t pay any meaningful tax. This is outrageous and has to stop. Low-income families can no longer afford to carry the idle rich and the tax-avoiding corporate sector.”

“So tax cuts are welcomed by Mana – starting with GST”

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