Labour's 'free' dental care fails to address the root of the problem – higher taxes

Commenting on Labour’s universal dental care announcement, Taxpayers’ Union Campaigns Manager, Callum Purves said:

“Labour has come up with another populist policy that like its GST debacle sounds good at first, but the cracks begin to show when you drill down into the detail.

“Labour’s announcement of universal taxpayer-funded dental care for under 30s with a long-term ambition to roll this out to all New Zealanders fails to tackle the root of the problem – higher taxes. New Zealanders – particularly those on low and middle incomes – are struggling with the cost of living, but providing dental care for everyone, including those who can well afford to pay for it themselves, will be incredibly expensive and will simply widen the fiscal cavity.

“Universal policies of this nature by definition fail to target support to those who need it most and are not a prudent use of taxpayers’ money. If Labour wants to support those on lower incomes, it would be better to look to increase tax credits or make direct transfer payments, rather than distorting the market and, like fees-free tuition, providing welfare for the well off.”