Treasurer Bill English said that Labour's failure to rule out the Alliance's land tax proposal opened the way for new taxes on top of the personal tax rate increase promised in the first term of a Labour/Alliance government.

"Up 'til now, there have been three parts to Labour's tax policy:
 higher personal income tax for people earning over $60,000
 reversing the 20 cents to $40,000 tax reduction proposed by National which would benefit everyone earning over $9,500
 a review of all other taxes.

"But at the first serious test of that position by the Alliance, Labour have been unable to hold their line.

"Labour is refusing to rule out the land tax proposal and has been reported as saying it's a matter for negotiation depending on the Alliance's post-election strength.

"To accommodate Alliance's expenditure proposals, even to a limited extent, a Labour-led government would either have to put taxes up further or introduce new taxes. Labour has finally had to acknowledge that," said Mr English.

Ends

© Scoop Media

Gordon Campbell: On The Government’s Smokefree Laws Debacle

The most charitable explanation for National’s behaviour over the smokefree legislation is that they have dutifully fulfilled the wishes of the Big Tobacco lobby and then cast around – incompetently, as it turns out - for excuses that might sell this health policy U-turn to the public. The less charitable view is that the government was being deliberately misleading. Are we to think Prime Minister Christopher Luxon is a fool, or a liar? It seems rather early on in his term of office to be facing that unpleasant choice. Yet when Luxon (and senior MP Chris Bishop) tried to defend the indefensible with the same wildly inaccurate claim, there are not a lot of positive explanations left on the table.... More