Chris Hipkins out of touch with New Zealand’s tax system

Responding to comments from Chris Hipkins’ State of the Nation speech that New Zealand’s tax system is unsustainable, inequitable and in desperate need of reform, Taxpayers’ Union spokesman Alex Murphy said:

“Chris Hipkins might be trying to conjure up the narrative that implementing new taxes will somehow lead to a more prosperous and productive New Zealand, but a quick look at the latest GDP figures will tell you that our economy needs to be stimulated – not stifled.

“Time and again we’ve demonstrated that bringing in a capital gains tax or a wealth tax is about the worst thing you could do to an already slumping economy, and in the latter’s case, would potentially bring in less tax, as all those top earners wave goodbye and move their wealth abroad.

“The Government is reeling in more tax than it has ever done before, and despite the spin from leftwing groups, is being funded almost entirely from the top quarter of earners. Hipkins would do well to pull his head out of the sand and realise that New Zealand actually needs less taxation and less government spending to get it out of this hole, not the contrary.”