What About Some Tax Back, Dr Cullen?

Thursday 13 May 2004 Rodney Hide Press Releases -- Economy

ACT New Zealand Finance Spokesman Rodney Hide today said that Finance Minister Dr Michael Cullen should use tax cuts to return the budget surplus, he keeps trumpeting about, to hardworking New Zealand families.

"The surplus is to be over $6 billion but Dr Cullen is promising to return only $250 million this year and $1.1 billion next year - and this by way of tax credits. Labour is going to take people's money and then return only some of it, to a few of us, and then not until election year," Mr Hide said.

"What we have now is a rich Government and poor people, who are squeezed to boost up Government coffers.

"There is to be nothing for the nine percent of taxpayers who earn over $60,000 and who pay 45 percent of the tax. Dr Cullen whacked these taxpayers with an 18 percent tax hike because `he needed the money' and `the rich had it too good for too long'.

"The operating surplus is sufficient to drop the company, and personal, rate of tax to 20 cents in the dollar. That would still leave $2 billion in the Government kitty for Dr Cullen to waste.

"A top rate of tax of 20 cents would boost the economy, boost wages, and put more money into hardworking people's pockets where it belongs," Mr Hide said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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