National cranks up tax pressure

The Government is collecting $43 million more a day in tax now than when it took power in 1999, says National.

Finance spokesman John Key said if the Government continued collecting tax at the present rate, by the middle of next year it would have collected 53 per cent more than the amount it took in 1999.

The calculations were released after National leader Don Brash's speech on Friday promising lower taxes for all "working New Zealanders" but not revealing the plans.

Mr Key said the Government accounts released on Friday showed the tax take rising by $433 million in the four months ended October 31.

"If this continues for the full year, the Government would have collected about $46 billion. That is 53 per cent more than the $30 billion it was collecting when it came to office."

He said while the Government was earning an extra $43 million a day by "overtaxing" all New Zealanders, Finance Minister Michael Cullen was dismissing tax cuts.

"If Dr Scrooge isn't prepared to cut taxes, why doesn't he just give back the additional revenue for the week before Christmas and send every New Zealander, young and old, a cheque for $75.

"If he did that many families, pensioners and low income New Zealanders could enjoy a turkey with all the trimmings for Christmas."

National is to release specific plans on its tax policy after the Budget in May.

Dr Cullen said that tomorrow's December Economic and Fiscal Update would show tax cuts of that magnitude were unaffordable over the longer term without spending cuts or spiralling public debt.

Dr Cullen has rejected cuts to tax rates, although he has not entirely ruled out a corporate tax rate cut.