Higher earning families to lose pay-outs under Nats
9:20AM Tuesday May 01, 2007

National is set to roll back part of the Government's Working for Families package to help fund tax cuts if its wins the next election, party leader John Key says.

The $550m boost to state pay-outs, announced before the last election, has been criticised by National for pushing welfare out to higher income earners and discouraging extra work through the scheme's high marginal tax rates.

Under the extended scheme, working families with one child earning up to $71,920 qualify, as do people earning up to $139,000 with five children.

But Mr Key yesterday said he saw no reason why such income earners should receive a state handout.

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