Don Brash MP National Party Leader

14 December 2004

Blind ideology stands in the way of tax cuts for all

National Party Leader Don Brash says the latest Government accounts show there is clearly room for Labour to provide tax relief to the hardworking Kiwis who've helped create the biggest surplus in New Zealand's history.

He is commenting on the latest set of Government accounts out today that show Treasury has revised up its Budget night surplus forecast from $5.7 billion to $6.5 billion.

"Michael Cullen's logic has been replaced with blind ideology on the issue of tax cuts.

"The Finance Minister claims that when we spend our own money it is inflationary - yet when he spends it for us, it is not," says Dr Brash, who last week outlined National's plan to give tax cuts to all working New Zealanders.

"Over time, National is committed to lowering taxes for all New Zealanders, without compromising the quality of service in core government areas like health, education, welfare and the police.

"Do we want a tax system that punishes those who try to get ahead, or do we want a tax system that rewards innovation, aspiration and enterprise?

"There is no better example of Labour's perverse view on incentives than this year's Working for Families package.

"Labour has taken a big slice of middle New Zealand and smoothed out their incomes. In some cases, someone earning $38,000 is topped up to almost the same level as someone paying tax on $70,000.

"The effective marginal tax rate is 91%, so why would anybody go to all the effort?

"National thinks those that take the risks and do the hard work deserve a bigger share of the income they earn. Taxpayers should be allowed to spend their own money, rather than leaving it to the government to spend on things like propaganda campaigns and personal grooming courses.

"Dr Cullen has had five years to deliver tax relief to working New Zealanders. National will do better over the next five years," says Dr Brash.

ENDS

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