Nothing new in National’s fiscal rules – but ‘no new taxes’ promise conspicuously absent

The Taxpayers’ Union is welcoming the direction of National’s newly announced “Budget Responsibility Rules”, but says there is nothing new in the fiscal targets and is calling on National to come clean about what taxes it plans to hike.

Taxpayers’ Union Executive Director Jordan Williams said:

“There is nothing new here. Surplus by 2028/29 is already in the Budget Policy Statement. Calling existing targets ‘Budget Responsibility Rules’ doesn’t make them rules. A rule has consequences when you break it. These have none."

“If National wants taxpayers to take these rules seriously, it should legislate them, or at the very least spell out what happens if a Finance Minister breaches them. Otherwise, they are just political promises that can be shifted, redefined or abandoned when the going gets tough. Last time the 'rule' was to cut spending - they clearly haven't."

“But the more concerning part of today’s announcement is what National didn’t say."

“Speaking to media today, National’s Leader and Finance Spokesperson put a massive asterisk next to the ‘no new taxes’ talking point, suggesting there could be new taxes, just not on ‘working people’."

“It appears National – just like Labour – is lining New Zealand up for another tax grab. Promising that someone else will pay isn't fiscal prudence, it's the sort of fudge that got New Zealand's finances into a mess in the first place."

“You can’t credibly claim to be the party of ‘lower taxes’ while going into an election offering no tax relief, allowing income taxes to rise through fiscal drag, and apparently foreshadowing higher taxes on someone other than ‘workers’."

“At minimum, Nicola Willis needs to be transparent about what taxes she's planning to hike."

“What does ‘no new taxes on working people’ actually mean? What about businesses? Motorists? Property owners? New levies dressed up as charges? National needs to tell voters now what, or who, it has in mind."

“If National really is the party of lower taxes, this should be easy. Nicola Willis should simply promise: no new taxes, no increases to existing tax rates, and no new levies designed to get around that promise."

“All roads lead back to the Government's failure to cut spending."

“At the last election, Nicola Willis stood before voters and committed to cutting spending. Instead, spending has gone up, both in inflation-adjusted terms and as a proportion of the economy. Every dollar of the Government’s much-vaunted ‘savings’ has been recycled into new spending."

“National’s fiscal objectives are sensible, and we welcome them. But taxpayers don’t need another set of targets without teeth. They need spending restraint they can see, fiscal rules with consequences, and an unequivocal guarantee that National won’t balance the books by reaching deeper into someone else’s pocket.”