Repeat after me – we are not overtaxed

Dr Cullen is insisting we are not overtaxed and the obscene level of surpluses is merely due to keeping costs down.

As John Key points out we are paying 38% more in tax than when Labour took office.

There are many ways to increase the tax take. One way is to impose a new tax rate as Labour did. Another is simply not to adjust the tax brackets for inflation. Hence one now has 12% of workers on a marginal rate of 39%.