John Key MP
National Party Finance Spokesman

18 August 2005

Clark/Cullen confirm rampant overtaxation

National Party Finance spokesman John Key says the opening of the books today confirms that mainstream New Zealanders are being grossly overtaxed.

"Labour is awash with workers' cash. Faced with such an embarrassment of riches, Labour's gut instinct is to extend the welfare driftnet to middle income New Zealanders.

"This shows just how out of touch Labour is. Mainstream New Zealanders want tax relief, not an extension of welfare.

"National has a responsible plan to lower taxes, and provide the right incentives for all working Kiwis to get ahead, not just the chosen few targeted by Labour for their votes.

"National will release its tax package on Monday. There is no need for us to review that package in light of today's announcement. The level of overtaxation is no surprise, was figured into our calculations, and is consistent with previous years.

Mr Key is commenting on forecasts that show the Budget surplus in the 2005/06 financial year will be nearly $7.3 billion - about $600 million up on the May forecast.

By 2007 the surplus will be running $1 billion ahead of forecast.

"I invite the public to draw their own conclusions about Labour's remarkable spending spree since the election was announced.

"This confirms what we thought all along, that Labour has been building an unrivalled election war chest at the expense of hard-working New Zealanders," says Mr Key.

ENDS

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