Labour will cost households $2,263 per year
Refreshed analysis of the gap between Labour’s spending promises and revenue intentions shows the average Kiwi household would be on the hook for $2,263 in additional tax per year, National’s Finance spokesperson Nicola Willis says.
“Labour’s hidden bill has now hit $18.8 billion and that money ultimately has to come from New Zealand taxpayers.
“It works out to $2,263 in additional tax for the average Kiwi household every year.
“It is remarkable that Labour’s hidden bill has grown, even after announcing a $5.5 billion tax hike on businesses by cancelling Investment Boost.
“Chris Hipkins has refused to tell Kiwis how he’ll pay for his promises because he doesn’t want them to know how much additional tax they’ll have to pay.
“But this morning on Newstalk ZB, Chris Hipkins ruled out borrowing more, confirming Labour’s spend-up will land directly on taxpayers.
“Conveniently for Chris Hipkins, his prospective coalition partners in the Greens, Te Pāti Māori and Opportunity have a suite of new taxes they want to impose on New Zealanders and he’ll be able to use those to pay for his hidden bill.
“Labour does not have a credible economic plan. All Labour has is an irresponsible, unaffordable shopping list which will be paid for by hitting every New Zealander with a growing tax bill.
“Yesterday’s Pre-Election Economic and Fiscal Update shows what responsible economic management delivers. National has taken the disciplined path and the numbers show it, with forecasts showing bigger surpluses and lower debt.
“The only way to make the positive forecasts a reality is to stick with National’s plan. Going on a spending spree, as Labour and the Greens are proposing, would put New Zealand’s recovery at risk, especially as the world remains volatile.
“The choice at this election is clear, between National with a plan to keep growing the economy, spending sensibly and paying down debt, with no new taxes. Or a Labour coalition that would squander surpluses, leave New Zealand exposed with more debt, and Kiwis paying nine new taxes.”
Updates on the previous Hidden Bill from June
Labour's growing list of promises:
- Freezing fuel excise duty and road user charges for three years: $3.14 billion
- Small business package: $1.56 billion
- Apprenticeship policy: $227 million
- Māori trades training policy: $84 million
- Graduate nurse guarantee: $526 million
- Infrastructure programme: $795 million
Offset (roughly cancels out):
- Reversing income-related rent changes, offset by reversing Accommodation Supplement changes
Added revenue:
Cancelling Investment Boost: $5.55 billion
Editor’s note – Chris Hipkins on Newstalk ZB this morning:
Mike Hosking: “Are you going to borrow more?”
Chris Hipkins: “No, we’ve been really clear about the fact that we’re going to….we want to get back into surplus, same level as the Government.”
