Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Alliance: Nat's tax cut plan is all upside down

Alliance Party says Nat's tax cut plan is all upside down

Alliance Party Media Release FOR IMMEDIATE RELEASE - Wednesday October 8 2008

The Alliance Party says that National's tax cut plan is all upside down according to list candidate Sarah Campbell.

This is due to National's tax plan favouring higher income earners over the vast majority of working class and poorer New Zealanders who get very little if anything from today's announcement. Under Alliance policy, approximately 67% of New Zealanders will benefit from lower tax rates under a progressive taxation policy.

"We favour a tax free threshold, progressive taxation, and an end to flat taxes such as GST," says Ms Campbell.

"This can be done with no loss of revenue as we have a fully costed plan that the public can see, and we are upfront about our intentions. The National Party are trying to buy votes, but we are trying to create a New Zealand where everyone has enough money to live on, and where society provides for people in need."

The Alliance wants to have an income tax-free threshold of $10 000. This will make a big difference to those on low incomes, in part-time and casual employment. People will keep the up to $1530 a year they currently pay in tax for this income. A tax free threshold is favoured by a number of parties as a way to reduce tax for lower income families, but it needs to be accompanied by reforms at the upper end of the scale as well.

Ms Campbell says this will be due to people on higher incomes paying higher marginal rates than they do currently, with a top marginal rate of 54% for those earning over $100 000.

"Progressive taxation will fund our Alliance Party goals of free education, a properly funded truly free public health system, and revitalised state housing. The terms of the tax debate have to be rethought as taxation is not something the Government does to people to punish them for their success – that's neoliberal madness – it's more about working together to create a decent society."

The Alliance has also been outspoken in its opposition to GST, especially on food. They have a fully costed plan to remove GST from food and replace it with a Financial Transactions Tax (FTT) levied at 2c per $100. The long term plan is to phase out GST altogether, as it is a regressive tax, meaning that those on lower incomes end up paying a higher proportion of their incomes in GST, as a higher proportion of their incomes go on goods and services.

"Tax cuts are not about cheese, or chewing gum, or anything like that, it's about being able to afford free education, free doctors' visits and prescriptions, and healthy homes, as it comes down to putting people first," she said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Government: Northland To Move To Orange, NZ Prepared For Omicron

Northland will move to Orange at 11:59pm tonight, 20 January 2022, while the rest of New Zealand will remain at Orange as the Government prepares for Omicron to enter the community.
“Vaccination rates have continued to increase in Northland and are now at 89 percent first dose. The easing of the Auckland boundary over summer did not drive an increase in cases so we believe it is safe for Northland...


Gordon Campbell: On Responding To The Need In Tonga

The power of the Tonga eruption (and the size of the aid response being mounted) have been sobering indications of the scale of this disaster. The financial impact is certain to exceed the damage done by Cyclone Harold two years ago, which was estimated at the time to cost $US111 million via its effects on crops, housing and tourism facilities. This time, the tsunami damage, volcanic ash, sulphur dioxide contamination and villager relocation expenses are likely to cost considerably more to meet...


Government: New Zealand Prepared To Send Support To Tonga

New Zealand is ready to assist Tonga in its recovery from Saturday night’s undersea eruption and tsunami, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today... More>>

Ministry of Health: COVID-19 Immunisation Starts For 5 To 11-year-old Tāmariki

More than 120,000 doses of the child (paediatric) Pfizer vaccine have been delivered to over 500 vaccination sites around New Zealand as health providers prepare to start immunising 5 to 11-year-olds tamariki from today, 17 January... More>>

Crown: Duke Of York’s NZ Military Patronage Appointment Ends
Buckingham Palace has recently announced that, with the Queen's approval and agreement, the Duke of York’s military affiliations and Royal patronages have been returned to the Queen... More>>

Financial Services Federation: Open Letter To Government From Non-bank Lenders: The Path Forward On CCCFA Changes
Responsible lenders are not interested in telling the Government “I told you so” when it comes to unintended consequences of changes to lending laws that are now causing grief for everyday Kiwis seeking finance... More>>

CTU: Too Many Kiwi Workers Financially Vulnerable As Omicron Looms
With New Zealand on the precipice of an Omicron outbreak and the economic upheaval that comes with it, the CTU’s annual Mood of the Workforce Survey shows the vast majority of kiwi workers do not have the financial resources to survive a period of unemployment... More>>

Financial Advice NZ: Law Changes Locking Out Home Seekers, Urgent Meeting Sought With Government

Recent changes in consumer finance law on top of Government policy changes are locking many home seekers out of finance options they would have qualified for just six weeks ago, says Financial Advice New Zealand... More>>




InfoPages News Channels