22 August 2005

A Third Economic Alternative – Less Corporate Tax, Higher Wages, And GST Off Petrol

New Zealand First is offering all New Zealanders a clear alternative to the extreme creeping bureaucracy and over-taxation of Labour and National’s tax cuts for the few, says Rt Hon Winston Peters.

Mr Peters is outlining the first part of New Zealand First’s economic plan to lift wages to first world standards through a vibrant and growing economy, at Morrinsville today.

“First we will remove GST off petrol. This will lower the cost of petrol by 15 cents a litre for regular unleaded and put roughly the same amount in the average household’s pocket each week as National’s tax cuts, but at one third the cost to the taxpayer.

“This means essential services will not have to be cut as they will under National and all families, whatever their income, will get a tax cut which will make a real difference.

“Second New Zealand First will also cut the corporate tax rate to 30 cents. Third we will raise the minimum wage to $12 an hour and introduce other incentives including substantial tax benefits for new exports. The spin-offs for business will be even larger as transport costs will be lower with a flow on to cheaper goods on the shelves.

“Labour’s income subsidies, which leave out 2.3 million New Zealanders, and National’s tax cuts for the few, fail to deal with basic wage levels. Many New Zealanders will still earn $10 an hour. By increasing this to $12 an hour, means working New Zealanders will get an extra $80 a week, which they have actually earned.

“With petrol price reductions this is more than Labour is offering, and much more than National is offering, but without the bureaucracy.

“This is a plan for all New Zealanders – not the select few the other parties target,” said Mr Peters.

ENDS

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