'No more room for tax cuts’

Press, 14 August 1978, Page 4

'No more room for tax cuts’

I PA Wellington There would be no possi-i bility of tax cuts "of any consequence” next year, the Prime Minister (Mr Muldoon)! has told Parliament. Next year's Budget had. mainly been “pre-empted” by! the tax proposals announced: in this year’s Budget, he said. There was “no way” Labour’s proposed tax cuts !could be written into next' ! year’s Budget. He was speaking during the second reading debate of the Incojne Tax (Annual) Bill] and the Income Tax Amendment Bill. He said the tax cuts would hit twice as hard next year, meaning double the amount of revenue lost!

to the Government, national superannuation would cost .more and the public service pay rises would take full i effect. The two bills under debale give effect to the tax cuts announced in the Budget. Mr Muldoon said Labour I believed it could pay for its 'tax cuts out of increased production, but that was “already spoken for,” he said. Labour would get nothing (from increased production and the proposed tax on overseas exchange would (only bring in S2OOM, he said. It would need “a raft of big tax increases" on spending to match the promises the Labour Party .was putting I forward, Mr Muldoon said.