Public want income splitting: Dunne

NZ Herald 17 August 2010

United Future leader Peter Dunne says he is confident public support for his “income sharing” policy will force the Government to back it despite widespread criticism the scheme is expensive and poorly targeted. Mr Dunne yesterday introduced legislation to give effect to his long-standing income sharing proposal that will allow couples with children under 18 to combine their income and then split it for tax purposes, reducing their overall tax bill. The policy would see a family with one income earner on $50,000 a year receive a $1230 annual credit but a single income family earning $140,000 a year would be $9080 better off. If the scheme was picked up by the estimated 310,000 families who would be eligible, it is expected to cost $450 million a year. However in echoes of recent comments from Finance Minister Bill English, the proposal was widely panned as poorly targeted. Labour MP Stuart Nash said his party would not support it as the scheme favoured wealthy parents over families that really needed extra support.