A FAIR DEAL FOR EVERYONE

Media Release
Embargoed until 1.15pm

Labour Leader Phil Goff today unveiled an action plan to create jobs and grow the economy, including a major overhaul of the tax system.

“Labour will rebalance the tax system so that everyone pays their fair share. We will provide some financial relief for all New Zealanders and crack down on tax dodgers who exploit the system, leaving the rest of us to pay the price for their actions..”

Labour’s fairer tax plan includes:
• introducing a new tax-free zone so that New Zealanders won’t pay any tax on the first several thousand dollars they earn.
• cracking down on tax avoiders and the loopholes they exploit.
• creating a progressive tax system with a new rate for the very top earners.

“We know many New Zealanders are feeling the financial squeeze as they face skyrocketing grocery bills and rising petrol and power prices. Prices are the highest in 21 years because of National’s GST hike and are far outstripping any increase in wages.

“Labour will help ease the pressure by giving all New Zealanders a break. We’ll do that by giving everyone the same tax cut, no matter what your income or what you do for a job.

“It’s a tax plan that benefits everyone, not like John Key’s tax switch which gave the wealthy few a windfall while low and middle income New Zealanders were forgotten.

“Labour will not borrow for its tax cuts nor will we increase GST or sell off assets.”

Labour will help pay for its new tax-free zone by putting the squeeze on tax dodgers, such as those who structure their affairs to avoid paying their fair share. One example is the speculators who rip off the system by deliberately offsetting losses in investment properties against their personal income.

“Labour will target speculators who arrange their affairs so they can rip off the tax system and leave other taxpayers to carry the load. This kind of avoidance is bludging. It is wrong and it’s bad for the economy.”

A new top tax rate will also be introduced to ensure that those earning the most pay their fair share. The threshold will be set well into six figures. The detail of Labour’s overall tax policy will be released later this year.

Labour is also announcing today a new five point package to create higher incomes and better jobs.

The action plan includes:
• Making research and development a priority, particularly in the clean tech sector.
• Investing in skills and trade training so that our young people don’t end up on the unemployment scrapheap.
• Building savings, ensuring our strategic publicly-owned assets aren’t sold off and putting a stop to the indiscriminate sale of farm land.
• Changing the way the Reserve Bank works and making sure monetary policy serves growth in employment and our export sector.
• Actively managing the economy and working closely with industry to grow quickly, sell more to the world and bring jobs home.

“I want to build a country that is prosperous for everyone. I want to create one New Zealand, not a country increasingly divided by the growing gap between rich and poor. I want to lead a country in which everyone pulls their weight, pays their share and gets a fair go.”

Action_Plan.pdf
Fair_Share.pdf
Tax_Free_Zone.pdf
Speech.pdf

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