Wednesday, May 18, 2011

Key lies about tax cuts

For the past two days, John Key has been defending his government's tax cuts for the rich by claiming that two-thirds of the cuts went to the bottom two tax brackets. This is, to put it bluntly, a lie. Those in the bottom two tax-brackets, the 76% of New Zealanders earning less than $48,000 a year, gained only 31% of the total - the exact opposite of what Key is claiming. Meanwhile, the 12% earning over $70,000 walked off with $1.6 billion a year, 43% of the total, while the top 2% of taxpayers, meaning Key and his rich mates, gained a staggering 11.5% of the total.

Make no mistake: National's tax cuts were not fair in any sense of the word. They were a giveaway to the rich, whose effects on the government budget have made life much harder for everyone else. But guess who Key will be protecting in tomorrow's Budget? Hint: it won't be you or me.