CTU media release
18 May 2010
The poor, women, Maori, Pacific workers core and critical as well Mr Key!
The Prime Minister’s comments that workers should not be concerned when his second budget this week disproportionately
favours the most wealthy in society because these people are “core and critical” to our economy is disrespectful and
wrong, said CTU President Helen Kelly.
Kelly said: “Tax cuts for those that already earn the most in our society will do absolutely nothing for groups in
society such as women, Maori, Pacific workers who are statistically very under-represented in that group, not to mention
all those workers in sectors like aged care, cleaning, hospitality – all those who are vital to our communities and our
workplaces and many who are struggling simply to pay basic living expenses.”
“This last couple of years has seen some of the most gross behaviour by some of the very people that will benefit most
from these tax cuts including people like Mark Hotchin and others, and has seen many, many decent working people lose
their jobs, their life savings and their homes. Recognising only these people as ‘core and critical’ because they earn
the most is insulting and wrong. A budget that helps those on lower incomes is what any decent government would deliver
at this point.”
The CTU opposes an increase in GST but supports an increase in property taxes. However, added Kelly, it is opposed to
the revenue from this going overwhelmingly to those on high incomes. It is also concerned that tax cuts will mean more
user pays for services such as early childhood education and health which will also impact more on low income people.
“There is no point arguing that those on high incomes pay the most tax. The top 50 percent of income earners pay 89
percent of tax but they get 84 percent of taxable income. Making them better off is not a tax switch. It is a tax
swindle.”
ENDS