INDEPENDENT NEWS

Loans changes make National the high tax party

Published: Wed 20 Oct 1999 02:38 PM
Wed Oct 20 1999
National 48 cents marginal tax rate for 8% of the workforce
Alliance 47 cents marginal tax rate for 1% of the workforce
The Alliance said National's plans to increase the repayment rate on student loans to 15c in the dollar means that National is now the high tax party.
National's changes announced today would mean people with student loans would have to pay 15c in the dollar on incomes over $50,000.
'National wants the effective marginal tax rate for the 328,000 students who will have a student loan by the end of the year to be 48 cents in the dollar on incomes over $50,000, ' Alliance leader Jim Anderton said.
'328,000 students or 16% of the workforce will have a student loan by the end of the year. This is predicted to increase to 460,000 or 22% of the workforce by 2005.
'Assuming half of these graduates earning over $50,000 at some point in their lives the National party will be taxing at least 8% of the workforce at the 48 cents marginal rate.
'The Alliance top marginal tax rate is only 47 cents in the dollar on incomes over $100,000. This would only affect 1% of the population.
'The Alliance is also proposing no tax increases until you earn $60,000 and is promising to abolish the need for a student loans scheme by reducing fees and introducing a universal student allowance.
'The difference between Alliance and National is that under the Alliance you would get a reduction in tertiary fees, universal student allowances, reduced waiting lists, no prescription charges or doctors fees and 80,000 new jobs.
'National is going to continue to increase student fees, pay young people allowances to be on the dole rather than study, increase waiting lists and prescription charges and keep unemployment constant for the next 50 years.
'I welcome the National party trying to fight this election on tax as they are now the highest taxing party in the country,' Jim Anderton said.
Visit http://www.alliance.org.nz for more information about the Alliance

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