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No such thing as a free tax cut

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"Superannuitants have a lot riding on this year's election result," Labour finance spokesperson Michael Cullen told a Grey Power meeting in Palmerston North today.

"The status quo is not an option. The choice is between a change to a Labour-led Government or a strong lurch to the right with Act being the policy powerhouse in a new rightwing coalition with National.

"And we know that Act will argue hard for its 20 percent tax rate in the coalition negotiations because tax is the most important issue on Act's agenda.

Act's tax cut programme would give another $450 a week to Jenny Shipley which somebody would have to pay for because there was no such thing as a free tax cut.

Among those who would have to pay were the elderly, most of whom would get nothing from Act's tax policy because they earned less than $40,000 a year, Dr Cullen said.

"Act talks of freezing government spending - probably for a minimum of three years.
For New Zealand Superannuation that means even the new 60 percent floor for the married rate will have to be breached.

"It will mean a cut in payments to hospital and disability services of nearly 6 percent - enough to wipe out thousands of operations and threaten home help services.

"Senior citizens cannot afford a lurch to the right to feed the greed of Mrs Shipley and her colleagues for tax cuts to benefit themselves. They need a Labour Government to protect their interests and their standard of living," Dr Cullen said.

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