Labour to scrap tax cuts

Central Leader - - YOUR PAPER, YOUR PLACE - VER­NON SMALL

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.

MONIQUE FORD/STUFF

Andrew Lit­tle says Labour’s fam­ily pack­age would dump Na­tional’s tax cuts but boost help for low and mid­dle in­come fam­i­lies.

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