John Key MP National Party Finance Spokesman

11 June 2004

Greedy tax grab set to stay

"Michael Cullen has made it clear that taxpayers will have more chance of sighting Elvis than they have of seeing a tax cut under this Labour Government," says National Party Finance spokesman John Key.

"Dr Cullen has signalled that decisions which should be made in the boardroom are going to be made in the Beehive. It's a classic case of command and control, more evidence of Labour's nanny state model for our business community.

"Tired of telling everyday New Zealanders what to do, the Government is again training its sights onto business - trying to convince them that Labour knows best."

Mr Key is referring to statements made by Dr Cullen at today's finance and expenditure select committee, where he said there would be no tax relief for Kiwi companies paying 33%.

National's policy is to reduce the corporate tax rate to match Australia's 30% rate.

"True to socialistic form, Dr Cullen is saying that rather than returning money to business by way of a more competitive tax rate, the Government plans to champion its own pet projects.

"There was bad news, too, for hard working individual taxpayers, who won't be offered any relief from so-called fiscal creep.

"Labour originally said only 5% of taxpayers would be caught paying the new top personal tax rate, today that figure has increased to 10% due to inflation and it will continue to rise.

"This is a greedy Government banking the benefits of inflation," says Mr Key.

ENDS

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