John Key’s fingers-crossed promise to provide $1500 a year in tax cuts would cost two or three times as much as he claims, providing yet another blow to his fiscal credibility, says Labour’s Finance spokesperson David Parker.
“John Key is undermining the work Bill English has done on fiscal credibility. To the obvious discomfort of his Finance Minister he has introduced vague promises of tax cuts years into the future.
“The National Leader has now tried to claim his tax cut would give Kiwis $1500 more a year, while saying it would cost $500 million to $1 billion. But $1500 a year will cost $2.4 billion, around three times what John Key says it would cost.
“John Key has a history of saying one thing and doing another. Last election he promised income tax cuts. He also promised to not increase GST. He then increased GST and gave 40 per cent of income tax cuts to the top 10 per cent. He will do the same again.
“National has spent years attacking opposition parties’ fiscal management. John Key’s desperation to get his campaign back on track is destroying that perception.
“It’s death by a thousand tax cuts,” says David Parker.
11 September 2014 MEDIA STATEMENT