Media statement

For immediate release

Wednesday, June 16, 2004

Tax increases for most taxpayers from ACT

United Future’s revenue spokesman, Gordon Copeland, today claimed that a majority of taxpayers will pay more, rather than less, tax if ACT’s 20% flat tax proposal is adopted.

“According to information released with the Budget, New Zealand has 2.847 million taxpayers.

“Of those, some 500,000 New Zealanders currently pay tax at 15% and a further 1.661 million pay tax at 19.5 cents, i.e. a total of 2,161,000 taxpayers (or 76% of all taxpayers).

“So ACT’s goal of a 20% flat tax rate means more than three-quarters of taxpayers will get a tax increase under ACT’s policies.

“This is hardly a mainstream or credible tax policy,” said Mr Copeland.

ends

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