INDEPENDENT NEWS

Low income employees hit as hard as high earners

Published: Thu 23 Dec 1999 12:53 AM
64% FBT triggers huge costs to Business
Labour’s Dr Michael Cullen has dented Labour’s credibility with ordinary workers by pushing the FBT rate to 64%, says National’s Revenue Spokesperson, Annabel Young MP.
“The 64% tax hits all people in jobs, regardless of income. All workers face the possibility of losing their fringe benefits because they now cost much more to provide. People on low incomes need to know that the Labour Party has hit them with this as a Christmas present.”
Annabel Young predicts that the renegotiations of contracts to remove benefits will trigger industrial strife across the whole workforce.
“The employer will not be able to provide the same package for the same dollars because the tax cost has just leapt up.
For the same dollars, the employer will be able to afford less. Unhappy workers on lower remuneration because of tax increases are a recipe for strikes and lost productivity.”
ends

Next in New Zealand politics

IHC: Fair pay for fair work welcomed
By: IHC
New independent Commission to tackle infrastructure issues
By: New Zealand Government
Government continues to enable motels to profit from crisis
By: Auckland Action Against Poverty
Gordon Campbell on the alleged China relations crisis
By: Gordon Campbell
Government to end tenure review
By: New Zealand Government
A new future for work skills training in NZ
By: New Zealand Government
Progress Stalled in Reducing Inequality
By: Salvation Army
Disability sector consulted on minimum wage
By: New Zealand Government
New infrastructure body welcomed by local government
By: Local Government NZ
Infrastructure NZ endorses new Infrastructure Commission
By: Infrastructure NZ
Commission should ensure better approach to infrastructure
By: Water New Zealand
Infrastructure Commission welcomed
By: BusinessNZ
Infrastructure Commission Independence Critical
By: EMA
Most new public housing places in a decade
By: New Zealand Government
Waiting list for public housing emboldens social support
By: Green Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media