Spending Means More Tax Or Debt

Labour's plans to spend more taxpayer money and make government bigger mean either taxes or debt go up, Treasurer Rt Hon Bill Birch said today.

"Labour's policy to take $330 million from plumbers, teachers, and small businesspeople who have worked to get ahead is the worst of both worlds.

"Hitting 144,000 working people and their families who already pay about a third of all income tax is punitive and will stifle growth.

"At the same time, the $330 million raised will never cover all the extra spending Labour wants to do. That means even higher taxes or more debt.

"Labour's legacy and its promises are not about better quality services and more opportunity for business and workers, but about more and more state spending.

Mr Birch said less than a year ago Labour's finance spokesperson Dr Cullen was prepared to do away with its higher tax policy.

"Back then he said:'you can't go into an election saying there are going to be large tax increases to any income level'.

"He was right. But Dr Cullen has been rolled by the rest of his caucus who want deals with the Alliance to get government back in control of people's lives.

"At least they've reminded voters what all their rhetoric stands for, not growth, jobs and opportunity, but more government, more debt, more taxes and more unemployed."