UnitedFuture tax policy ‘simple and fair’
4 June 2008

UnitedFuture leader Peter Dunne today released the party’s tax policy, describing it as ‘simple and fair’.

“We voted for the recent tax changes in the Budget because we thought any tax cut was better than no tax cut at all,” he told the party’s annual conference in Auckland.

“But our policy goes further and delivers more. We want.-

  • income up to $12,000 taxed at 10%
  • income between $12,001 and $38,000 taxed at 20%
  • income above $38,000 taxed at 30%

“We would also push for.-

  • Income splitting for parents with dependent children
  • Honoraria for volunteers up to $1,000 to be tax free
  • Gift duty to be abolished.

“We have carefully costed the impact of these policies and in a full year, they would cost $4.5 billion.

“Looking at the tax cuts alone for a family on $45,000 a year, from 1 October this year, they will get a tax cut of $33 a fortnight.

“Under UnitedFuture’s plans, the same family would get a tax cut of $45 a fortnight.

“Couple that with UnitedFuture’s income splitting plan, and the tax cut rises to $87 a fortnight.

“Let me repeat that – the low-income family gets a $33 tax cut next October, but under the UnitedFuture plan, the same family would get either $45 or $87 more a fortnight.

Mr Dunne explained a family on $60,000 a year gets a tax cut of $31 a fortnight from 1 October 2008.

“Under UnitedFuture’s proposals, that would more than double to $63 a fortnight and with UnitedFuture’s income splitting plan, they would get a tax cut of $137 a fortnight.

“For the family earning $80,000 a year, they will get a tax cut of $54 a fortnight from 1 October 2008.

“Under UnitedFuture, that would become a tax cut of $130 a fortnight and with UnitedFuture’s income splitting plan, a tax cut of $191 a fortnight.

"We think this tax policy is affordable, simple and fair. It strikes the right balance between letting Kiwis keep more of their own money and providing the Government with enough revenue to carry out its necessary work without making cuts in Government spending on social services and family assistance,” said Mr Dunne.