Sticking plaster solutions are uninspiring, unambitious and ineffective – we need to tackle the cost of government crisis

Commenting on Labour's tax policy announcement today, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Chris Hipkins's strong words on tackling the cost-of-living crisis ring hollow. The high inflation environment and higher interest rates on mortgages have been driven by the cost of government crisis. While the Working for Families tax credit increases will be welcomed by those on lower incomes, policies like these, free prescriptions, free childcare and public transport subsidies are sticking plaster solutions that fail to tackle the root cause of the financial problems Kiwi families are facing.

“Grant Robertson talks about a Road to Damascus conversion, but the Road to Hell was paved with good intentions. GST off fruit and veggies is a policy that sounds good at first, but does not stand up to scrutiny. New Zealand’s GST system is the envy of the world. These savings are unlikely to be be passed onto customers in full and the $2 billion cost of the policy will disproportionately benefit the wealthy and big supermarket chains.

“These proposals are uninspiring, unambitious and ineffective. Government spending has increased by 80 percent since 2017 and New Zealanders are contributing massive amounts in tax, but the quality of our public services has got no better. We need to cut wasteful spending and provide proper tax relief across the board to Kiwi families and businesses and chart a course more a more ambitious and prosperous New Zealand.”