16 December 2010

On the ninth day of Christmas, let’s have a tax-free $10,000

On the ‘ninth day of Christmas’, the Green Party today proposed introducing a tax-free $10,000 as a way to ease the financial burden on everyone while helping those on the lowest incomes the most.

“Many families feel the pinch at Christmas, and for those on the lowest incomes it can be incredibly hard to make ends meet, not just at Christmas, but all year round,” Green Party Co-leader Metiria Turei said.

“A tax-free threshold is widely acknowledged as an effective method to deliver support to everyone, while at the same time ensuring that those on very low incomes benefit most.

“The lower your income, the less of it you pay in tax, and if you earn under $10,000 you pay no income tax at all, freeing up more of your income for essentials.

“It’s an effective and simple way to close the widening gap between the haves and the have-nots, which is better for everyone,” Mrs Turei said.

Mrs Turei said introducing a tax-free threshold of $10,000 would have particular benefits for children whose parents or caregivers rely on low incomes.

“When families struggle to make ends meet, children often go without fresh fruit and vegetables, wet-weather gear, shoes that fit, and adequate heating. They also miss out on school trips, books, and sports events.

“A tax-free threshold of $10,000 would free-up caregivers’ incomes to better allow them to provide these things.

“There is also strong evidence to suggest that helping those on the lowest incomes has the greatest stimulus effect on the wider economy, so during a recession is a sensible time to invest in such a policy.

“Every child needs a secure home, food to grow healthy and strong, quality public education, and a safe environment. If we guarantee these essentials, we guarantee their opportunities for life.

“Introducing a tax-free income threshold of $10,000, along with extending Working for Families support to the children of beneficiaries, building healthy new state houses, are important ways to guarantee these essentials to every child.

“They’re all on our Christmas wish-list to narrow the gap between the haves and the have-nots and build a fair society that’s better for everyone,” Mrs Turei said.

Each working day before Christmas, the Green Party is highlighting a key issue related to inequality, and presenting Green solutions to those issues.

 
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