John Key MP - National Party Finance Spokesman

10 March 2006

Surplus shows personal, business tax cuts affordable

The latest Government surplus - $5.5 billion for the first seven months of the financial year - shows there's plenty of room for tax cuts, says National Finance spokesman John Key.

"The surplus confirms that business tax cuts are affordable, and so are personal tax cuts," says Mr Key.

"Michael Cullen should get off the fence with his equivocation about whether the 'chewing gum' personal tax threshold changes are going ahead or not in 2008.

"The surplus is strong, and while the economy is set to slow, it's simply not believable that the Government can't afford the $360 million cost of changing the personal tax thresholds.

"Likewise, with so much room to move, Dr Cullen should stop his equivocation around whether business tax cuts they are a goer or not.

"Peter Dunne seems to think they are, but Dr Cullen seems to keep pouring cold water on Mr Dunne's desires.

"The huge surplus revealed today shows New Zealanders continue to be overtaxed, as the Labour-led Government continues with its giant spendup.

"Far from adding a new payroll tax, it's time for the Government to look at cutting taxes."

ENDS

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