Source: Better Taxes for a Better Future Campaign
In an open letter released today, fifteen members of the Better Taxes for a Better Future campaign coalition are calling out both the National and Labour parties for their irresponsible positioning on tax, and for failing to engage honestly with the public about the revenue challenges we face, in the lead up to the 2026 General Election.
“Both of the major parties, one of which will lead the next government, are running campaigns that perpetuate negative attitudes towards tax, at a time when we desperately need to raise more revenue to fund the things we need to live good lives – like safe staffing in our hospitals, building more public housing, and tackling our infrastructure deficit,” said Kate Stone, Better Taxes campaign manager.
“The National Party is campaigning on having “no new taxes”. The Labour Party has committed to a Capital Gains Tax limited to investment property, but is now buying into National’s anti-tax messaging by trying to minimise it in the public conversation and refusing to commit to any other tax changes.”
“This positioning is irresponsible given the fiscal challenges, outlined by the Treasury and IRD, that are posed by an aging population, increasing health expenditure and the need to respond to climate change and associated extreme weather events.”
“And it is out of step with where the public is at. Polling shows people support increased spending on public services and a recent poll indicates that two thirds would be willing to pay more tax for better healthcare,” said Stone.
“We cannot cut, cut, cut our way out of this situation – the organisations that have signed on to this letter already see the impact of the current underinvestment in public services on our communities.”
“We need to grow tax revenue, but that does not mean taxing ordinary, hard working whānau more. Relative to most countries we like to compare ourselves with we’re a low tax country, they collect more revenue and have better public services than we do. But our tax system is unbalanced and not every part of society is contributing its fair share: working whānau pay income tax and GST, but we do not tax wealth and capital gains in any meaningful way. That needs to change if we’re going to gather the revenue we need, and gather it more fairly,” said Stone.
Comment from NZ Nurses Organisation
“Tōpūtanga Tapuhi Kaitiaki o Aotearoa The New Zealand Nurses Organisation, supports the open letter challenging the major political parties’ positions on tax during the election campaign. Chronic underfunding of the health system has caused nationwide staffing shortages, ageing facilities, and an inability to meet community need — resulting in avoidable harm and death. Last financial year, hospitals ran a $1 billion deficit just trying to stand still, while the wider health system deficit is estimated at $4-5 billion in immediate unmet need. Meeting current demand and building a health system fit for the future will require all political parties to commit to tax reform so that every New Zealander has access to high-quality public health care.” NZNO President, Anne Daniels.
Comment from Child Poverty Action Group
“Child Poverty Action Group (CPAG) exists to advocate for policies that reduce and ultimately eliminate child poverty and we wholeheartedly support the Better Taxes Coalition open letter. It is very clear to us that New Zealand needs sufficient and sustainable public revenue to meet our obligations under the Child Poverty Reduction Act – now and in the future.”
“We see every day the consequences of underinvestment for children and their families: rising material hardship, inadequate incomes, housing stress, unequal access to health and educational opportunities. These are imposing significant costs on our kids, our communities and the wider economy. Child poverty alone is estimated to cost New Zealand billions of dollars annually.”
“We, too, are calling on Labour and National to have an honest public conversation about how New Zealand will fund the commitments needed to meet the Child Poverty Reduction Act targets, to reduce child poverty, and address the long-term social and fiscal challenges.”
Lyn Amos, Kaiwhakahaere Mātua – Executive Officer, Child Poverty Action Group.
The Better Taxes for a Better Future Campaign is a coalition of over 20 organisations led by Tax Justice Aotearoa.