Malpass on Labour’s political radar

Luke Malpass writes:

Was this the week we finally learned just how faulty Labour’s political radar has become?

Within 24 hours Labour had tabled and then walked away from a bill that would have applied GST on fees for KiwiSaver.  …

Anyway, Labour has been stretching the friendship with the electorate on tax since 2020. Getting rid of interest deductibility on investment housing was one, and a new clean car tax on imported combustion cars another that has already gone through in this term. The tax change that was clearly flagged before the 2020 election was an increase in the top rate of personal income tax to 39% for income over $180,000.

But Finance Minister Grant Robertson said clearly at the time that there would be no other taxes. The “KiwiSaver Tax”, according to the Regulatory Impact Statement accompanying the bill, would cost some $103 billion in savings forgone through to 2070.

So they promised no new taxes and tried to sneak through a $103 billion one!

The Government is currently reviewing the Covid traffic light settings and then the entire system. There seems little reason, given the current numbers and so forth, for the country not to go into green.

After a long, cold winter, not having to wear a mask everywhere may be just the tonic a grumpy public needs, as will any movement around isolation periods for people who get Covid. Getting this right will be key for the Government in the latter part of the year.

Labour will need to fix up its political radar if it wants to be re-elected in 2023.

Going to Green would be a sensible step.