“In a predictable move, Labour are again talking about introducing new taxes. There are two clear reasons this is wrong. The data doesn’t exist to support it because we are already highly taxed, and the morality is all about taking instead of building,” says ACT Leader David Seymour.

“We are highly taxed compared with all but old Europe. The latest comparable data, from 2022, shows New Zealand’s Government taxing 33.8 per cent of wealth produced that year. The OECD average is 34.0 per cent. In the Asia-Pacific, only the Japanese are more highly taxed than Kiwis.

“The reality is that countries compete to attract talent and investment. Taxes are one factor skilled workers and investors consider when choosing a destination. Australians, Koreans, Canadians, Singaporeans, Chileans, Americans, and everyone else in the Asia-Pacific pay less tax than New Zealanders. Raising taxes further would only make it less attractive to work, save, and invest here in New Zealand.

“If New Zealand was a low-tax country, you could ask if there’s room to raise taxes and still attract skilled workers and investors, but the facts are that simply isn’t true. There are those who say they only want to change the tax mix. However higher earners already pay disproportionately more income tax than lower earners, and that tax applies to income from investments.

“All that is left for a new tax to achieve is to further punish people who work save and invest. It tells a generation of voters that your problems are caused by someone else’s success, and politicians can solve your problems by taking their money and giving it to you.

“New Zealanders do not need more wealth redistribution; we need more wealth creation. We won’t get that by any Government adding new taxes. By proposing tax as a major part of the solution to our problems, Chris Hipkins is really saying his ambition is to manage the decline of New Zealand with himself in charge as the divider in chief.

“Rather than coming up with a tax solution that solves no problem except perhaps feeding envy, New Zealand needs win-win thinking where every person can succeed.”

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