The Labour Party has challenged Prime Minister John Key to say whether he thinks only high income earners should donate their April 1 tax cuts to charity because they are the ones who gain the most.
Mr Key said yesterday, in a speech to Philanthropy New Zealand, that while he was sure many people needed their tax cuts to pay bills or debts he was also sure there were many who would be in a position to donate the extra money to charity.
"John Key should make it clear who he is suggesting should give up their tax cuts to charity," said Labour leader Phil Goff.
"Those people earning $70,000 a year, those on $80,000? Doesn't he realise those people are already donating to sports clubs, schools and charities? Or does he have another income level in mind."
Mr Goff said that under National's tax cuts a family earning $57,000 lost $14 a week compared with what they would have got under Labour, while top executives would get $500 a week extra.
"Asking higher income earners to give to charity doesn't make up for the $730 million John Key's tax package is taking out of the pockets of low income people," Mr Goff said.
"These tax cuts, if spread more evenly, would have had the biggest, most immediate and cost effective impact on stimulating demand and keeping business and jobs going."
In his speech yesterday Mr Key also said the Government was exploring ways to encourage people to give money to charity.
He listed the initiatives as the previously announced voluntary payroll system that would allow employees to donate directly and receive an immediate tax rebate, a system where "gifts in kind" would also attract a rebate and a means to give the rebate itself to charity.
"These initiatives have some tricky issues to sort out but officials are working on these ideas," he said.
