By Mike Bain/cvnznews.com
National is accusing Labour of signalling support for a raft of new taxes after Labour’s Revenue spokesperson Deborah Russell described proposals from advocacy group Tax Justice Aotearoa as “really good suggestions.”
The lobby group released a report calling for a series of major tax changes, including a 50% top income tax rate for earnings over $150,000, a broader capital gains tax, an inheritance tax, a wealth tax, windfall profit taxes, and higher trust tax rates.
National MP Simeon Brown said Russell’s comments showed Labour was “pulling back the curtain” on its appetite for further taxation. He argued Labour had already committed to a capital gains tax that would affect households, KiwiSaver balances, and businesses, and that Russell’s remarks suggested the party was open to going even further.
The political tension comes after months of debate over Labour’s proposed capital gains tax, which party leader Chris Hipkins has refused to rule out expanding. The Greens have also described Labour’s plan as a “starting point,” while continuing to promote their own package of wealth and environmental taxes, which they say would raise $88 billion over a decade.
National says the mixed messages reflect a wider lack of clarity in Labour’s economic policy direction. Brown said Labour’s senior finance figures were “all over the place,” pointing to Russell’s comments, Hipkins’ refusal to rule out further tax expansion, and the absence of Labour finance spokesperson Barbara Edmonds from the public debate.
Tax Justice Aotearoa, the group behind the proposals, has long advocated for a more progressive tax system and has previously argued that New Zealand’s current settings favour asset‑holders over wage‑earners. Their latest report revives long‑running debates about capital taxation, wealth inequality, and whether New Zealand should adopt taxes common in other OECD countries.
Brown said National was focused on “fixing the basics” and argued that returning Labour to government would risk the country’s economic recovery. Labour has not yet confirmed whether any of the lobby group’s proposals will be adopted as policy.
