Labour Tax Hike Will Cost Jobs And Push Up Mortgage Rates

  • Tony Ryall
Youth Affairs

Today's NZ Herald Digipoll survey showing almost three out of five New Zealanders aged 18-39 oppose Labour's tax hike comes a day after a leading economist said a Labour-Alliance government would see mortgage interest rates increase, Youth Affairs Minister Tony Ryall said today.

"Labour's cocktail of tax and mortgage rate increases will hit middle-income New Zealand families," Mr Ryall said.

"What we know is that younger New Zealanders want to get ahead. They want to keep the fruits of their work, thrift and effort. Labour's promise to increase tax is a penalty on people working hard and improving their lot.

"Labour must also be surprised that so many middle-income earners oppose Labour's tax hike. Helen Clark and Michael Cullen describe their promise as more of a signal than anything of substance. But what this poll shows is that middle-income people aspire to higher incomes and believe working people should keep as much as possible of their earnings.

"Labour's tax promise is a major strategic blunder. The community knows that Labour stands for higher taxes costing jobs, effort and thrift. National will continue to reinforce that message over the next year."