Bill English MP
National Party Finance Spokesman
9 February 2007
Dr Cullen’s new mortgage tax
“Michael Cullen should fix his own high taxing, big spending polices before he levies a new tax on fixed interest
mortgages,” says National Party Finance spokesman Bill English.
“Home owners are going to be paying the price for Labour’s big spend-up. Labour needs to tidy up its own backyard before
slapping homeowners with a new tax.”
Mr English is responding to Dr Cullen’s proposal to place a mortgage interest levy on all fixed term mortgages in order
to cut household spending.
“Dr Cullen has put pressure on inflation and interest rates because of his high taxing big spending policies. In the
last monetary policy statement the Reserve Bank described Labour’s fiscal policy as ‘quite expansionary .. offsetting to
some degree the moderation in domestic demand’.
“This means the Reserve Bank thinks Labour’s spending is putting pressure on interest rates when households are being
more careful.
“And the problem is about get worse, with Labour planning a surge in spending up to the 2008 election.
“The irony won’t be lost on taxpayers. Dr Cullen is proposing a tax on families with a mortgage so they stop spending
while he goes on a binge himself. He should practice what he preaches.”
ENDS