No Wage Rises or Tax Cuts for the poor

Kay Brereton of the Wellington People's Centre is critical of the Prime Ministers comments that people will still be better off after the ETS price rises, as they have the benefit of higher wages and lower taxes.

Kay Brereton says: "While those on the average wage and above may be able to absorb some of this tax and the price rises that flow from it, this is not the position that most New Zealanders find themselves in. At least 70% of New Zealanders earn less than the average wage; the median wage for June 2009 being $538 per week which is $27,976 per annum.

While people on the average wage or above may be getting an income tax cut and be somewhat better off, as usual people on benefits get no tax cut at all. The majority of people are in fact facing tax increases while their wages remain static. These tax increases are the multiple increases in ACC levies, the ETS levies, and the impending increase in GST, as well of course as the increase in tobacco excise tax.

For people on fixed incomes and benefits times are dire indeed, these are the people with no discretionary income, and we can expect to see their debt levels sky rocket. Many people are already having trouble paying their power bills which are set to increase with the ETS; there will also be the inevitable rise in food prices due to increased transport and production costs.

We call on the Government to abandon the regressive taxation regime which they have adopted, and to take care of the entire population of New Zealand, not just the rich."

ENDS

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