Bracket creep used to fund Labour spend up

National Party Finance spokesman Bill English says people on the average wage are paying more and more tax to fund Labour's next round of election promises.

"Under Labour a growing number of New Zealanders have been hit with extra tax because their incomes have increased with inflation."

Mr English is releasing figures which show that while the average wage has risen by 29.9% in the past seven years, the amount of tax paid on the average wage at has gone up by 43.7%.

"Given that the CPI has also increased by a little over 20% in that same period, it's not hard to see why families are struggling to find extra dollars to pay for rising mortgages and increased rents. More has gone into Michael Cullen's pocket than theirs.

"Labour has never understood the long term benefits of reasonable tax rates and good value government spending. They have always chosen higher tax rates and big spending increases regardless of quality.

"The tax cuts promised in 2005 to begin next week on April 1 were cancelled in 2007 to pay for the record spend up that last year's Budget signalled.

"Even before this year's Budget is locked down, Dr Cullen has made it clear that he does not plan to do anything to control the growth of Government spending.

"Labour has no respect for taxpayers under pressure. Dr Cullen complained to a select committee earlier this year that the public has an 'Oliver Twist mentality' when it comes to tax cuts – that if you cut taxes, the public will keep coming back for more.

"What the Finance Minister fails to appreciate is that he is the one who keeps coming back for more from the pay packets of average income New Zealanders who are facing rising interest rates and record high petrol prices.

"New Zealanders are sick of running overdrafts to finance Labour's election campaign."