Tax money go-round kicks off today
Prime Minister John Key’s money go round to pay for tax cuts for the top 10 per cent of income earners began today in Auckland, says Labour Leader Phil Goff.
“John Key told a Grey Power audience that the elderly will be no worse off as a result of the income tax/GST switcheroo he has flagged for May’s Budget,” Phil Goff said.
“The fact that he is out desperately trying to sell his tax package, after previously saying everyone would have to wait till May, shows he knows people are not buying his spin.
“As a result Mr Key has been forced to signal today that the elderly will receive a one off inflation adjustment worth 2 per cent to cover the cost of hiking GST from 12.5 per cent to 15 per cent. That does not mean that super payments will rise from 66 percent of the after-tax average wage.
“Labour has called for Super to be increased to cover for the rise in GST.
“This is the bare minimum of what Mr Key should be doing to ensure the elderly do not suffer because of his tax change.
“The elderly have every right to be sceptical that they will not fall behind as a result.
“For many their income is already stretched – the bulk of which has to pay for everyday essentials which are subject to GST.
“John Key has gone back on his word. No one voted for an increase to GST.
“No one voted for paying more for milk, bread, clothing, power or rates.
“But the real sting will be in National’s proposed income tax changes. The winners will be the highest earners, the losers will be those on middle and low incomes.
“The GST increase will hurt middle and low income families already struggling to make ends meet,” Phil Goff said.
