28 Apr 2010

Labour says it would keep current top tax rate

7:57 pm on 28 April 2010

The Labour Party says it wants to keep the top tax rate around the current level, if it is elected to power.

The National Party has signalled that it will reduce personal income tax rates and increase GST in May's Budget.

Labour leader Phil Goff says his party's tax policy will help low and middle income earners and not just those in the top tax bracket, as he claims National's would.

He says while Labour would leave the top tax rate around its current level of 38%, it would increase the income threshold for the top rate from the current $70,000 to six figures.

However Finance Minister Bill English says Labour's plans to borrow more, raise taxes, and spend more are reckless in the context of a world where Governments have big deficits.

The Government will announce its tax package in the Budget on May 20.