-
Labour leader Phil Goff - Source: ONE News -
Watch Video
-
Related
The Labour Party is kicking off the first caucus meeting of the year defending their $10 a week tax cut proposal, insisting the country can afford it.
The party gathered in Auckland for an all day meeting today, and high on the agenda was discussion of the $5000 tax-free zone announced by leader Phil Goff this week.
It would see the first $5000 of every worker's income have no tax taken from it, at a cost of $1.3 billion a year.
Today Goff reiterated that it was an affordable policy.
"We'll stop the tax dodgers," Goff said. "The tax working group says half of our wealthiest people don't pay their fair share of the tax burden. That goes on to other people.
"Those at the top of the heap will pay their fair share and those that have been dodging their obligations will have to meet them," he said.
Goff said there will also be a higher tax rate for the most wealthy, but today refused to give ONE News details on how high the top tax rate would go until later in the year.
This week he has faced criticism that there are errors in his calculations over whether the tax-free zone is affordable.
The Prime Minister described Goff's idea as 'fantasyland'.
"Phil Goff is completely misleading the New Zealand public," Key said today. "It is simply not affordable unless the top personal tax rate is raised to at least 60 cents in the dollar.
Goff countered Key with: "That's a curious accusation because this government is borrowing $200 billion a year to pay for its tax cuts."
As well as sorting out the finer details of Labour's tax cut package, Goff will also be making decisions about a caucus re-shuffle in the next two weeks.
It's also pushing the idea of Monday-ising Waitangi and Anzac Day , which means if they fall on a weekend, that day is transferred to the Monday, as is the case in Australia for public holidays.
