Friday, 12 November 2004

Has the Government forgotten our superannuitants?

United Future revenue spokesperson Gordon Copeland wonders whether the Government, in its anxiety to dismiss his call for tax cuts as being “only for the wealthy”, has forgotten that superannuitants also pay tax.

“My specific proposal is that the 15 cent in the $1 tax bracket be moved from $9,500 per annum to $10,750. This will give every superannuitant a tax saving of $6.25 ($12.50 for a married couple) per month.

“Revenue Minister Dr Michael Cullen admitted in the House last week that in a progressive income tax system, if the tax brackets are not adjusted for inflation, then taxes are increasing in purchasing power terms.

“In simple terms that means that the Government’s failure to adjust the brackets means that our superannuitants are now paying more tax than they did in the year 2000, in spite of the Government’s 1999 credit card pledge that they would not increase taxes for people earning less than $60,000.

“It’s not good enough and United Future will continue to call for an adjustment to the tax brackets with effect from 1 April 2005,” said Mr Copeland

ENDS

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