New jobs tax could not be more poorly timed

Labour’s Income Insurance Bill is a slap in the face to the squeezed middle who are getting smashed by the cost of living crisis, National’s Workplace Relations and Safety Spokesperson Paul Goldsmith says.

“The day after Labour announces the biggest Budget spend-up in New Zealand’s history, they are setting the stage to hike taxes on every worker and business in the country.

“Unbelievably, the foundations for this ‘jobs tax’ are being pushed through under urgency just hours after the Finance Minister announced his cost of living band-aid.

“Labour is simply taking with one hand whilst throwing out scraps with the other.

“If you’re on an average wage of $72,000, you could be worse off by $1,000 a year under the jobs tax scheme – and you wouldn’t get anything from the Government’s cost of living package.

“Workers on $50,000 might receive the temporary handout of $350, but they would lose almost twice that amount – $695 a year – after Labour clips their jobs tax ticket.

“With the economy losing momentum and interest rates rising, the last thing we need is another tax on small businesses. A strong economy is the way to deliver higher incomes and more choices, but targeting businesses will just punish investment and create fewer opportunities for Kiwis.

“Prices are growing twice as fast as wages, and this tax will reduce take-home payments even further.

“Kiwis are going backwards and the Government’s only instinct is to spend, spend, spend – and create new taxes to fund their addiction. Labour is clearly determined to bring in this jobs tax.”