21 July 2005 Media Statement
National’s retrograde tax policies
Finance Minister Michael Cullen says it is now clear that National would unwind the sensible tax reforms of the 1980s
and 1990s.
Dr Cullen was anticipating National’s announcement today of tax rebates for student loans following their announcement
last week of child care rebates.
“Successive governments removed a whole host of rebates ending with the abolition in 1999 of the requirement to make an
annual income tax return.
“National is now moving back in time, reinventing a whole series of tax rebates which will involve much bureaucracy for
very little benefit.
“I predict that the next move will be a rebate for health insurance which Treasury has already advised would save less
in health costs than the cost of the rebate itself.
“It is surprising that Don Brash, who in the 1980s was one of the architects of New Zealand’s simple GST regime, is now
going back before 1984 to recreate a tax system marked by great complexity and great unfairness,” Dr Cullen said.
ENDS