How is National making life easier for Kiwis?
The real wages of Kiwis are falling and unfortunately National’s plans to introduce GST will not help those struggling to make ends meet, Labour’s Associate Finance spokesperson Clayton Cosgrove said today.
“Real wages are set to fall 0.5 per cent in the next 12 months according to the consensus report released by the New Zealand Institute of Economic Research today, so many Kiwis will have less in their pockets to pay the bills,” Clayton Cosgrove said.
“Add to that the 2 per cent Westpac predicts will be added to inflation by John Key’s plans to hike GST to 15% and the outlook looks grim for many Kiwis. But what is the Government doing to help make life easier for Kiwis?”
Clayton Cosgrove said the NZIER last week confirmed the real benefit of National’s tax changes will only go to very high income earners. It showed just how unfair John Key’s plan will be on low and middle income Kiwis.
“The NZIER report suggests Kiwis earning up to $50,000 a year will only be $5 a week better off under John Key’s plan. Treasury figures show 80% of taxpayers earn up to $50,000.
“$5 a week will be wiped out by the increased prices of power, petrol, food and other household expenses.
“Any Kiwis earning around $37,000 or less will get just $2 per week or in some cases nothing.
“However it also shows a household earning three times as much, on over $146,000 a year will be $90 a week or nearly $4700 better off per annum. That’s nine times better off than a Kiwi on the average wage.
“How can that be fair? It is clear National’s plans to hike GST are designed so John Key can offer ‘mates rates’ to very high income earners while middle and lower income Kiwis miss out.
“National’s income tax changes will cost $ 3billion. Why won’t it clear up what proportion of that will go to very high income earners?
“What is clear though is that Kiwis are finding getting by is becoming increasingly difficult. But what is National doing to make their lives easier?
