Wednesday, 16 May 2007

Cullen increases real taxes by 22%

Just before Gordon Copeland quit the United Future party, the former revenue spokesman criticised Dr Cullen's arrogant refusal to cut taxes for New Zealanders, despite massive Government surpluses.

Copeland backed a study released by the Centre For Independent Studies, which revealed that over 12% of New Zealand workers are now paying Dr Cullen's top tax rate of 39c... compared with just 5% of taxpayers in 2000.

The failure of the Labour-led Government to adjust tax thresholds to match inflation has led to significant "tax bracket creep" in the last seven years. When taking into account inflation over that period, many New Zealanders have seen their real taxes increase by 22.6% since 2000.

"Let them eat cake!"

The Centre for Independent Studies revealed a person on the average wage of $36,000 in 2000, would need to be earning $43,000 now, just to maintain an equivalent income in real terms. Because of Cullen's inaction, they are paying an extra $2,400 in tax each year.

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