MEDIA STATEMENT
31 March 2009
Media Statement

Tax cuts will make no difference to most Kiwi families

National’s tax cut package won’t help the majority of Kiwi families struggling to make ends meet, Labour leader Phil Goff said today.

“Over 70 percent of taxpayers earn less than $40,000 a year, and under National’s tax plan they don’t get one cent extra,” Phil Goff said.

“It looks like National won’t fully implement its tax plan so this is as good as it gets. The high tide mark for John Key helping families has been reached and most are getting nothing. John Key should have targeted National’s tax package to make it fair for all New Zealanders.

“Under National’s tax cut package someone on the Prime Minister’s salary of $393,000 a year gets $120 more a week, someone on the average wage gets $18 a week, and those on less than $40,000 miss out altogether.

“It’s not fair that chief executives on six figure incomes are the winners and struggling families are the losers. National’s failed to put money back into the hands of hardworking New Zealanders who are only just making ends meet.

“It’s those workers that need help. They are the ones who will spend tax cuts on necessities and who will keep the economy moving at a time when it’s facing massive challenges. Under National’s plan all these workers miss out.

The Labour leader says John Key’s failure to outline what National’s tax package will achieve is proof it’s poorly designed.

“To date we’ve heard a number of suggestions from the Prime Minister to try and offset the design flaws in his tax cuts. Save it, spend it, donate it, and reduce debt with it.

“Labour is not opposed to tax cuts. But it is opposed to a tax cut programme that is not fair for all. Once fully implemented, National’s tax package will be worth $800 million a year to taxpayers, but a third of this is going to the top three percent of taxpayers,” Phil Goff said.

“These tax cuts ignore the many New Zealanders who are struggling to make ends meet.

“The economic challenge the world faces is now becoming a reality for many Kiwi families. Jobs are being lost and more homes are being lost in mortgagee sales.

“National must rethink its tax plan to help Kiwi families,” Phil Goff said.

ENDS

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