Monday, 22 November 2004

Dunne says boosting family incomes will be key election issue

United Future leader Peter Dunne says boosting family incomes will be a key election issue next year.

Mr Dunne told a meeting of the Napier and Ahuriri Rotary Clubs in Napier this evening the debate about tax reform has become arcane and sterile, and is of little relevance to most people.

“Michael Cullen and John Key can argue all they like about the increase in the average household tax burden relative to mean household income.

“People are far more interested in their own family’s circumstances, and how they can be improved.

“The Working for Families package is a start which will benefit many low to middle income families, but there is a need to do more, especially when the tax take has been $3.5 billion ahead of forecast over the last three years, and when rising wages are pushing people into paying higher tax rates,” he says.

“United Future’s income splitting policy will have real benefits for most New Zealand families with children with a household income of up to $120,000 a year, which is more than 97% of all taxpayers.

“Under our policy:

Both partners will be recognised as contributing equally to the running of a household, whether or not both are in the paid workforce.

A single income family on $55,000 a year will be $44 a week better off.

A family earning $75,000 a year (with one partner earning $65,000, and the other $10,000) will be $67 a week better off.

“A single income family on $70,000 a year will be $96 a week better off,” he said.

Mr Dunne told the Rotarians United Future’s income splitting policy would cost $500 million a year to implement.

“This is very much a policy for middle New Zealand families, so it should be no surprise we are promoting it.

“It is not radical – just plain commonsense, and it is fair.

“If a couple running a business together can split their business income this way for tax purposes, why can they not do it for their household income, when bringing up a family is the most important business most of us will ever be involved in?” Mr Dunne asked.

ENDS

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