Funding the Government’s spending priorities

When Prime Minister Jacinda Ardern became Prime Minister, she entered office with a long list if promises. They looked fantastic and still do today. But one question exists:


I am concerned that despite Ms Ardern being to say that the Labour party was able to prove it had it’s plans costed, Labour have under estimated the money they will need to spend. I think that the party pushed itself into an unnecessary tight spot by not raising taxes.

There are ways around some of the associated issues through user pay charges for example when it comes to National Parks – Department of Conservation for example could require a $10 fee for anyone over 16 but under 65 entering a National Park. It would be used to fund maintenance, repairs and upgrades on top of base funding from the Government. Another source could come from requiring tourists to have medical insurance whilst in New Zealand. Too often tourists receive medical care in New Zealand and walk out the door without making arrangements to pay the outstanding bill, which means that the unfortunate taxpayer coughs up the money.

Some income sources could be controversial, but need to be explored nonetheless. One of these would be legalising cannabis. The effect of this, aside from saving potentially millions from being wasted on trying to criminalize a problem that will probably exist until civilisation is finished, would also enable cannabis based businesses to flourish, and thereby a taxable stram of business. The American states where it is legal to sell cannabis have reported significant increases in their tax take as a result of being able sell cannabis products.

Labour is most likely going to have raise taxes. Currently those brackets that existed since 2010 and are not tight enough are still intact. They are:

  • $1-14,000 = 10.5%
  • $14,000-$48,000 = 17.5%
  • $48,000-$70,000 = 21.0%
  • $70,000+  = 33%

My assumption is an income tax rise is on the cards. Big or small. Long-term or short-term, it is coming.

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