Bill English MP
National Party Finance Spokesman

24 October 2007

Goff at odds with Cullen on personal tax cuts

National Party Finance spokesman Bill English says the public will want to know who to believe about Labour's personal taxation intentions, following comments made by Phil Goff in Parliament today.

During the general debate in Parliament, Mr Goff confirmed 'personal tax cuts will be available'. That contradicts the comments made by Finance Minister Michael Cullen who said only minutes before that he would apply four economic tests before considering personal tax cuts in election year.

"But Mr Goff told the Parliament unequivocally that personal tax cuts 'will be available'. Mr Goff has brushed aside Dr Cullen's four tests.

"These comments are made in the face of a Cabinet reshuffle that will downgrade Dr Cullen's influence because of his persistent opposition to tax cuts.

"After eight years of Dr Cullen mismanaging economic growth, the average worker's wage gains have been virtually gobbled up by inflation and over-taxation.

"People who earn $39,000 and pay 33c tax in every extra dollar they earn are now wondering why tax cuts are affordable only in election year under Labour."

Mr English is also urging the Engineering, Printing and Manufacturing Union to ask its members if they want lower taxes before attacking National for advocating lower taxes for workers.

"We know union members want lower taxes because we're talking to them in workplaces regularly. They have been patiently waiting for Labour to deliver, and after eight years they have given up.

"Kiwi workers need a National Government that is prepared to trust them more with their own money. We remain committed to a credible programme of phased tax cuts because that is an incentive for work, enterprise, and growth.

"National is determined to make cutting taxes part of the routine operation of Government - not something that cynically happens only in election year," says Mr English.

ENDS

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