Episode description
Episode description
National's tax plan, and the highest inflation in decades has the government feeling the pinch. Political Editor Jane Patterson counts the costs for both parties.
"At least $200 out of our single income for him just to get to work and home each day ... that was taking away from our food" - Jeanette, whose family has been hit hard by inflation
If the latest political poll is anything to go by, National is hitting the right note by focusing on the financial hardship faced by many - it's real and just another burden heading into the third year of the pandemic.
The government argues much of the pressure's coming from overseas events out of its control, but National digs into its playbook for accusations of profligate spending and clutching onto hard-earned taxpayer dollars.
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New Zealand's experiencing the highest levels of inflation for 30 years, with ANZ warning it expects inflation will hit 7.4 percent in the second quarter, with big impacts on household and business budgets.
Some of the causes are clear: supply chain disruption from Covid-19, Russia's invasion of Ukraine, and the related rising price of fuel which also pushes up prices in other sectors through transport costs. Fruit and vegetables are 17 percent dearer this year, the biggest annual increase in a decade.
Prime Minister Jacinda Ardern argues much of the pressure's coming from overseas events out of its control.
But National leader Christopher Luxon's proposed solution is to raise thresholds on income tax to account for wage growth, remove the $180,000 top tax threshold of 39 percent, and abolish taxes imposed under Labour.
These include Auckland's regional fuel tax, interest deductibility and bright-line test changes for landlords, the income insurance scheme, and the value capture scheme for Auckland light rail.
Read more:
Inflation forecast to go even higher: What you need to know
Biggest annual increase in food prices in a decade
Week in Politics: Luxon's tax tactics pay off
Luxon doubles down on tax cuts
Business leader backs Luxon's tax-scrapping proposals
Ardern says the government's family tax credit changes outstrip the benefits of the cuts proposed by National for low- and middle-income earners, without the "great cost" cuts for those at the top and potential cuts that go with it.
Her Finance Minister, Grant Robertson, goes to his own playbook, with criticism that tax cuts and debt reduction cannot be done while also maintaining or increasing spending. Voters deserve more detail on National's promises, he says.
National's Finance Spokesperson Simon Bridges brushes that off…