Alliance Party media release FOR IMMEDIATE RELEASE

Sunday 24 January 2009

Proposed Tax System Is "Predictable And Flawed"

The Alliance Party says "A tax system for New Zealand's future", the report from the Government's Tax Working Group, is predictable and flawed in its negative, anti-social focus.

Alliance Party co-leader Kay Murray says that a lot of effort seems to be going into promoting ways of making life more comfortable for well off people who don't want to contribute their share of taxes to keep New Zealand running.

She says it appears the Tax Working Group, comprised of high income males, is recommending a tax system that benefits high income males.

"There seems to be little recognition of the positive role taxation plays in creating a progressive society where all people can reach their potential and the worst excesses of poverty and insecurity have been ended."

Ms Murray says the idea that reducing taxes on the already wealthy will make New Zealand a better place to live is a discredited and anti-social idea.

"With all the noise about New Zealand catching up with Australia, then perhaps we should follow the Australian example, where the marginal income tax rate on earnings over $180,000 is 45 cents in the dollar."

"Tax is required for a civilized society, ensuring public health care and education, and ensuring unemployment, sickness and old age are not the personal catastrophes they were in the bad old days the National Party wants to return to."

Ms Murray says low income and middle income earners certainly stand to lose from such measures as increasing GST and lowering the top tax bracket.

She says the Tax Working Group should not be setting out to cave in to individuals whose goal in life was getting a free ride at everyone else's expense, but to close loopholes and ensure that the tax base could support a secure and fair society.

Ms Murray says that the Alliance supports a progressive tax system that would reduce the tax burden on low to middle income earners, phase out GST and introduce a capital gains tax on investment property and a financial transactions tax focussed on large movements of money.

In addition, the Alliance had a fully costed budget for its policies including tax tables, unlike many other parties.

http://www.alliance.org.nz/index.php/events-and-actions/general-election/alliance-party-proposed-budget/

ENDS

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