John Key MP
National Party Finance Spokesman
15 February 2006

Cullen signals tax threshold change is history

Finance Minister Michael Cullen has given the strongest signal yet that the “chewing gum” tax threshold adjustment in 2008 is history, says National Party Finance spokesman John Key.

Asked about the future of the tax threshold adjustment at the finance and expenditure select committee today, Dr Cullen said there was a “fiscal hole” left by the axing of the proposed carbon tax.

“This is a clear signal they are taking the chewing gum out of the chewing gum Budget,’’ says Mr Key.

“This is pathetic. New Zealanders stood to gain 67c a week extra in 2008 from Labour’s deep dark Budget secret.

“Now Dr Cullen is ruling out giving them anything. This is despite this Labour Government running the largest surpluses in New Zealand history.

“New Zealanders will now have to wait nine years – to see no change in their tax burden. By then, even more New Zealanders will be in the top tax bracket thanks to bracket creep.”

ENDS

© Scoop Media