However, Swarbrick is not wrong when she says many regular New Zealanders are watching their living standards regress. The Kiwi battler is working as hard, if not harder, than before but many are treading water at best.
Long gone are the days an average household could survive on one income. For some, now two are still not enough.
This has become a common gripe around the Western world, leading in part to disillusionment towards the legacy political parties, who some consider responsible for their lifestyle decline.
The coalition is unlikely to propose major tax reform before this year’s election. Luxon, Peters and Seymour all believe growing the economy and creating more valuable jobs is the road to prosperity – and increases the tax take at the same time.
While the Herald-Motu Research Poll of Polls predicts the coalition has a 74.3% chance of being re-elected, if we did see a change in Government, what might Kiwis be faced with?
Last year’s Green alternative Budget promised to fix this by raising $88 billion in new revenue, including through a wealth tax, an inheritance tax, and increasing income and company tax rates.
That is a lot of money and a lot of new taxes. Many of us who have worked hard to build up a nest egg for ourselves and our children would’ve winced at the thought of it.
Swarbrick, who has made it clear she has ambitions to be Finance Minister, may dial back the party’s updated tax policy today in a bid to make it more palatable for potential coalition partners.
Labour leader Chris Hipkins had previously said of the original Green policy it was a “huge spend-up” and “unrealistic”.
A limited capital gains tax and potentially changes to interest deductibility are the extent of Hipkins’ financial reforms for this election.
“I have made it very clear that our tax policy is as far as we go,” he has said.
What may be the wild card is the Opportunity party (Top), which is also calling for a tax reset.
The party, led by Qiulae Wong, is focusing its policy on three reforms: a citizen’s income, a land value tax and a compulsory superannuation system.
Its version of a universal basic income would see almost all adults receive up to $19,400 a year. This would replace most of New Zealand’s current benefits, the party’s website claims, while top-up support would be available for superannuitants, parents and others.
The citizen’s income would be funded by its land tax – a 1.75% annual tax applied to the value of land only to discourage land-banking and large property portfolios.
For the farmers reading this and thinking, “where do you think I’m getting that kind of money from?”, the party says exemptions and deferrals may apply ... in essence, make sure you read the small print.
But Top will likely need to reach the 5% threshold to enter Parliament.
The Poll of Polls calculates Top has a 14.9% probability of getting across the line. If they do, the possibility of a Labour-Greens-Top coalition emerges.
Tax reform is emerging as a key election issue, with voters ultimately being asked to decide between the status quo or rolling the dice on significant reform.
