Labour is developing a tax policy which would give low and middle-income families a better deal, party leader Phil Goff says.He told Labour's annual conference at the weekend the Government's tax cuts, which came in at the beginning of this month, had tak
Labour is developing a tax policy which would give low and middle-income families a better deal, party leader Phil Goff says.
He told Labour's annual conference at the weekend the Government's tax cuts, which came in at the beginning of this month, had taken the burden off high income earners but most people were worse off.
Mr Goff told reporters there could be a higher tax rate imposed on high income earners but there wouldn't be any announcements until the policy was finalised.
"We have to take pressure off people," he said.
"If you want to know why most families are working harder and not getting ahead, it's because National gave 42 percent of the tax cuts to the top 10 percent and gave 2 percent to the bottom 20 percent," he said.
"Those who get huge tax breaks need to pay their share so that middle and low income New Zealanders can pay less tax."
"We're looking at either redistributing those tax cuts directly, or improving the services that low and middle income people rely on."
He has also promised a Labour government would put an end to tax avoidance schemes which allowed wealthy people to hide their income.
Mr Goff strongly criticised the Government's economic policies.
"I reject `rebalancing' that means throwing people on the scrapheap," he said.
"Family budgets are under pressure, prices are rising faster than wages, median incomes are down $9 a week -- its the worst result since June 1999 and that was the last time National was in power."
Mr Goff said the Government had no idea how to create jobs.
"National has created nothing but excuses and gimmicks ... two years of a National government and we're going backwards, not forwards."
