David Cunliffe

National's tax plan is a fizzer rather than a game-changer, says Labour Finance spokesperson David Cunliffe. "If raising GST on hard-working New Zealanders is the answer, what on earth was John Key's question?

"Tax change must meet three tests. It must be fair to all, grow the real economy, and be politically sustainable. This package fails all three," David Cunliffe said.

"The essence of National's plan is a massive cut to the top tax rate, apparently funded mainly by a rise in GST.

"Labour made clear from the outset it would never support huge personal tax cuts for the rich funded by ramping up GST on Kiwi families. Quite frankly, it's gob-smacking that John Key is proposing exactly that," David Cunliffe said.

"National is trying to claim it will help low-income Kiwis, but no one believes that. Families struggling to raise three kids and pay for the week's groceries are frightened. 'It's time for National to get real with Kiwi families. This plan completely fails the equity test," David Cunliffe said.

"The plan also fails to deal systematically with core structural issues of inappropriate tax incentives for property, and the lolly-scramble of tax planning rorts for the rich. "It is now clear that the tax group's primary role has been to give National a veil of respectability so they can lower the top tax rate and call it a step change.

"Most astoundingly, National has thrown away the chance to forge real, lasting reform by ignoring Labour's promise to work constructively on a bipartisan tax plan. "National had a chance to show real leadership. It failed," David Cunliffe said.

"New Zealanders are left with a Prime Minister long on the hype of 'step change' and 'catching Australia', but short on a positive strategy to achieve it. "Raising GST, digging up national parks and attacking working conditions is no one's idea of a 'brighter future'," David Cunliffe said.