With Budget over, our heads are down working to launch our next campaigns fighting for Lower Taxes, Less Waste, and More Accountability in the coming weeks. First and foremost: tackling the costs of local government, and demanding more transparency.
In this week's edition, we expose the 14-year "temp" at IRD, dig up a $100,000 ratepayer-funded dinosaur in Taupō (no, that's not a metaphor), and highlight our first Generation Screwed training retreat.
But before we dive in, let's recap what the most important event of the year is for taxpayers...
The 2025 "fudge-it" Budget 💳🫠
In case you missed it, these were our thoughts having sat in the Budget 2025 lock-up.
In short, Budget 2025 could have been delivered by Labour's Grant Robertson. Marketed as a 'growth budget', we were promised three things: tackle overspending, get on top of the deficit, and go for growth.
Instead, spending continues to explode, the forecast debt trajectory is worse, and apparently, 'Going for Growth' amounts to just [checks notes] one percent extra GDP – over 20 years!
You know it's bad when Red Radio New Zealand asks Jordan onto Morning Report and gives the Taxpayers' Union a fair airing. Have a listen. 👇
A mea culpa from us... 🫢
As part of our Budget update from the Beehive Lock-up on Thursday, we said that Treasury forecast interest costs this year alone would amount to $9.5 billion, or "$467 for every Kiwi household".
A couple of our more eagle-eyed supporters were quick to correct our typo, pointing out that $9.5 billion doesn't equal $467 per household, but rather $4,670! Jordan missed the zero!
Fair to say we gave him the weekly wooden spoon award for the screw-up.
On the brighter side ☀️📈
Before you say we're too doom-and-gloom (or too hard on Nicola Willis), we're not total naysayers. There are some good initiatives in the Budget.
Here are four initiatives that, whilst not necessarily popular, are needed to get the books back into shape:
1. Reducing the taxpayer contribution to KiwiSaver
The economic literature is really clear on this: government subsidies to Kiwisaver don't actually serve to increase overall savings rates. Instead, they tend to shift money that people would save through other schemes into KiwiSaver. That would suggest it is a poor use of taxpayer money (the whole justification for the subsidy is to, apparently, encourage savings). It would be far better to cut the taxes on portfolio investments, regardless of whether it's Kiwisaver or another scheme.
2. Stopping 18 and 19 year olds from getting benefits, when family support is available
This is a no brainer. We all know a family who can't get their kid, sorry, young adult, off the couch!
For some reason, though, this policy isn't coming into effect until 2027!
3. The Investment Boost programme
This allows businesses to deduct 20 percent of the value of new assets in the year of purchase. It's a great policy – but only 20 percent as good as the big growth kahuna: full capital expensing 😍
4. Doctors' prescriptions will be extended up to one year
Again, no brainer. Everyone knows the feeling of having to go to (and pay for) the doctor for a two minute visit for a repeat script.
The alternative: The Greens want to tax you haaaaaard 🟢
Meanwhile, the Greens have released their 'alternative budget'. Incredibly, they didn't invite us to their lock up (!!!), but it was still a timely reminder that things can always be worse. 😳
Chlöe Swarbrick, Marama Davidson and co would have had us all paying death taxes, wealth taxes, trust taxes, company tax increases, income tax increases... you get the picture.
They say we need another $22 billion in tax-and-spend (that's $10,817 per household!). Haven’t we tried that already?
When Labour took office in 2017, government spending was $76 billion. By the time they were voted out in 2023, that number had ballooned to $138 billion.
And what did we get for it? Do you want more of it?
If that much extra spending didn’t solve the problems last time, what makes anyone think throwing another $22 billion at it now will do the trick?
Ever wondered what goes through Chlöe's clouds? 💨
In case you're not an avid social media type and missed this. 🤣🤣🤣 The marvels of modern technology...
The 14-year "Temp" 🤦♂️
Thanks to some nifty OIA work, our Investigations Team have uncovered that IRD has been paying one so-called “temp” for 13 years and 11 months. All at contractor rates!
And it doesn’t stop there. In just the past five years, IRD has shelled out $20.8 million on 12 long-term contractors. One team alone burned through $12.4 million on seven of them.
This is happening despite Finance Minister Nicola Willis directing departments to rein in consultancy spending. Clearly, IRD didn’t get the memo - or chose to ignore it.
We say, if a role is vital, hire for it. Unless something is temporary (i.e. not 14 years), contractors seldom offer better value for taxpayers.
Rates-a-saurus Rex spotted in Taupō 🦖
Taupō District Council’s latest expense, sorry, "artwork", aptly named "Boom Boom", was unveiled last week. A steel "blow-up-style" dinosaur cost local ratepayers a cool $100,000.
Proposed back in 2018, when crime, the cost of living, and parking weren’t as pressing problems, it’s only fair to wonder: should this dinosaur have stayed extinct?
The statue arrives alongside an eight percent rates increase this year. Boom Boom goes the Council's budget.
Investing in the next generation of taxpayer heroes 🦸
Our "Generation Screwed" activists 🪧✌️
While this year’s Budget won’t save New Zealand, the efforts of Generation Screwed will.
Last week, the Taxpayers’ Union brought together students from five universities for the first annual Generation Screwed training retreat.
Generation Screwed is for leaders of tomorrow who share our passion for building a more fiscally sustainable and prosperous New Zealand.
Our bright young leaders debated the big issues facing their generation, particularly the mounting debt burden they stand to inherit, explored barriers to New Zealand's growth, and how to effectively influence decision makers and policy. 🤞
From "Campaign Planning 101" to media training and workshops on effective messaging, we're doing what traditionally only far-left unions and environmental groups have done in New Zealand: investing in young people.
Big shout to our guest speakers/workshop leads, Dr Eric Crampton (the Chief Economist at the NZ Initiative) and David Farrar (our former Board Member/Co-founder) and the half a dozen extra-special donors who specifically underwrote the travel costs / made the event possible. 🙏
If you, or someone you know, is a student who shares our vision of a prosperous, low-tax New Zealand with efficient, transparent and democratically accountable government, email our Generation Screwed Coordinator, Alex Emes.
Thanks for your support,
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