Unions to seek tax cuts

Press, Volume CXV, Issue 33776, 24 February 1975, Page 11

Unions to seek tax cuts

(Aetv Zealand Preus Assoctattonl

AUCKLAND.

Trade unions will press to have the “balance” of last month’s wage adjustment plus further cost-of-living increases, paid as 1 tax concessions.

The president of the Fed-i I eration of Labour (Mr T. E. I Skinner) said that this policy had been endorsed in [the last few days by the; national council of the federation and the Auckland Trades Council.

' The national council had decided to continue pressing for a return to direct wage bargaining and an end to, ! controls.

In the interim, any cost-of- j living adjustments should be paid in full as increased wages or decreased taxes.

However, there was a I strong preference for the matter to be dealt with by (Cutting taxes.

L Mr Skinner said that this (View had been endorsed by the Trades Council.

"I fee) certain that this is the view of the overwhelming majority of. wage and salary earners. In the last few years, the taxation system has got completely out of hand.

“Because of inflation, people who are really on the i lower level of incomes are ! paying tax on a level I intended for middle-income earners.” he said.

This negated the effect of any cost-of-living adjust'ment to wages. When the Government announced that it would ■offset only part of the increased cost-of-living in the .wage adjustment paid last I month, the F.O.L. immed- ; iately indicated that the I "balance” should be given in ■ tax concessions.

Later announcements by the Minister of Finance (Mr Tizard) gave the F.O.L. confii dence that taxes would be ; revised to give a fairer deal 'to those on lower income, ■and to offset rising costs, I said Mr Skinner.