29 March 2006 Media Statement

Average Kiwi family would have been $70 a week worse off under National

The roll out of the Working For Families package has highlighted the unfairness of National's unaffordable tax cuts that favoured the wealthy, says Social Development and Employment Minister David Benson-Pope.

Mr Benson-Pope says from Saturday a family with two children on the average family income ($58,000) will be a further $90 a week better off. This makes them in total $116 a week better off since 1 April 2005.

"Under National's proposed tax policy without Working For Families, the same family would be around $70 worse off from this Saturday," said Mr Benson-Pope. "The message is quite clear, National doesn't care about working families.

"Labour is targeting tax credits where they are needed – for hard working families bringing up children. By targeting families through the tax system we are showing our commitment to helping Kiwis create strong families with healthy confident youngsters.

"Contrast this with across the board tax cuts, which deliver the highest gains to people with the highest incomes, regardless of whether they have children or not."

A family with two children on the average family income ($58,000):
Under National's $11billion tax cut policy (single family income) $45 pw
Under Labour's Working For Families package $116 pw
Net Difference (in favour of Working For Families) $71 pw

Mr Benson-Pope says National's Parliamentary ally ACT further highlighted today the inequity of National's tax cuts.

"It's rather duplicitous of ACT's Heather Roy to say she wont apply for family tax credits under Working For Families because on her high Parliamentary salary, even with five children, her family would qualify for $22 per week. But under National's tax cuts Ms Roy would collect $90 per week," said Mr Benson-Pope.

"Is Ms Roy saying she earns too much to collect $22 a week in family tax credits under Working For Families but she isn't too wealthy to collect $90 per week under National's tax cuts?"

ENDS

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