Labour to scrap tax cuts
Labour is promising to scrap National’s Budget tax cut plan.
Instead it will funnel the cash into higher Working for Families payments and extra help for those with young children.
It’s a package it says will deliver up to $48 a week extra to middle income families.
It would also reinstate the independent earners tax credit, which was dumped in the May Budget, but keeps in place National’s big boost to the accommodation supplement.
The flagship policy, announced by leader Andrew Little in Auckland on Tuesday, aims to contrast Labour’s targeted help for middle income families with the extra cash the wealthier receive under National’s tax package.
It includes a winter energy payment for beneficiaries and superannuitants, announced by Labour on Monday.
That would be paid between May and September and give $450 a year to a single person and $700 to a couple or a person with dependent children.
Leader Andrew Little said the ‘‘targeted Families Package’’ would cost $890 million in 2018/19, but scrapping National’s tax cutswould free up $1.5 billion.
The savings would go towards investing in public services and infrastructure.
The package would give more than 70 per cent of families with children a bigger income boost than the Budget 2017 package.
Andrew Little says Labour’s family package would dump National’s tax cuts but boost help for low and middle income families.