By the time inflation, GST increases and increased costs in things like childcare and ACC are passed on most families in Horowhenua and Kāpiti will be worse off under National’s tax swindle,” Labour MP Darren Hughes says.
“This budget has meant middle and low income earners will at the end of the day be significantly out of pocket. This isn’t the tax step change John Key promised it’s a tax swindle,” according to Darren Hughes.
“A family with 2 young kids even end up $55 per week worse off after GST, inflation and ECE charges are all taken into account.
“The reality is the people on very high incomes are, much better off following yesterday’s budget, people on average incomes are worse off. This is the third tax cut for the third year in a row for those earning over $100,000 per year. Hardly anyone earns that kind of money in our community.
“This year ACC premiums have gone up, health services are being cut at the Horowhenua Health Centre and in home care for Kāpiti residents and now GST has been increased, as well as childcare costs. That is simply not fair that the majority of New Zealanders are paying for the tax cuts of a few people on very high incomes.
“People who were already struggling will continue to struggle following yesterday’s budget.
“Labour strongly opposes the increase on GST, the cuts to health services and the increase in costs of childcare to parents.
“Kiwi families realise that while National have offered them tax cuts, price increases will mean they will be no better off.
“It’s hard not to think of this Budget as one that robs Peter to pay Paul,” said Darren Hughes.
