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Getting Back on Track: Tax and Spending

Testing the Air. Cartoon credit: SonovaMin The BFD

Stuart Smith
National MP
Kaikoura

As they say, a week is a long time in politics, and it has been for the Labour government. While I take no pleasure from the troubles of others, in these challenging times we must have our government focused on the things that really matter.

The cost of living crisis, rising crime and our failing health and education sectors demand urgent action to NZ get back on track. But rather than focusing on what really matters, there has been more cabinet chaos when Minister Hon David Parker confirmed that he had effectively resigned as Revenue Minister because his much-coveted wealth tax was cancelled by the Prime Minister.

The reason David Parker continues to hold his other ministerial positions is that Chris Hipkins cannot afford to sack him. The remaining caucus members lack the necessary talent and ability to effectively push through their RMA reforms. Likewise, Hipkins relies on Parker’s expertise as Transport Minister for similar reasons.

It must have been an uncomfortable moment for Hipkins, but he knows Parker’s taxes would be catastrophic for his election chances and he was prepared to swallow the dead rat and keep Parker on.

That said National is focused on holding the government to account and rolling out our plan to get NZ back on track. We must grow the economy and lift incomes while delivering tax relief to hard-working families by inflation-adjusting tax brackets. I note that another political party has adopted our tax policy. They do say that imitation is the sincerest form of flattery.

The IRD and Treasury also seem to endorse our tax relief policy in their budget advice to the government where they said: “Personal tax reductions could address a range of policy outcomes”, including “supporting incomes to assist with cost-of-living pressures”.

Their preferred method of tax relief was adjusting tax thresholds as it would “have a greater economic impact as well as provide a more significant gain to those taxpayers”.

But we must also address wasteful spending and there is a lot of room for that in the backroom bureaucracy. Health system funding has increased by 71 per cent over the last six years while front-line services are failing. Where has all that money gone? It is clear this government’s focus is on centralising everything and growing the public service, not front-line services.

The same can be said for education with the rubbish developed by the Ministry of Education, as in the history and science curriculums. Rather than focusing on teaching reading, writing and maths, skills that are vital for our young people’s success, they seem intent on indoctrinating them with mystical beliefs rather than physics, chemistry, biology and algebra.

National has a plan which includes detailed policies which you can find here: https://www.national.org.nz/plan.

With your help we will Get New Zealand Back on Track.

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