While National has made “no new taxes” a key election pledge, Bradford points out that doesn’t necessarily mean households won’t face other new costs. For example, the legislative path has already been cleared for time-of-use congestion charging.
“You pay for a toll road if you head up north. We’ve got more toll roads coming on the way. Those are fees, levies, charges, taxes – whatever you want to call them,” Bradford says, pointing out “there is a difference between a tax and a levy”.
Both Labour and National have also pledged to delay increases in the fuel excise tax.
“Everyone loves to talk about the potholes” Bradford says. “But guess what happens if you don’t have money in a road maintenance fund? The road doesn’t get maintained.”
National’s proposed cap on council rates might sound good to ratepayers, but if councils have less ability to generate revenue, Bradford says the alternative could be more user-pays services – or fewer services altogether.
“Do you want to pay to go to the library? Do you want to pay to use the toilets in the parks? Do you want to pay for your rubbish and recycling to be picked up? It might be that your project you were hoping to have … for your town, your city, your neighborhood, won’t be happening now because there is not enough money to pay for it.”
Labour’s sweeteners include free GP visits and prescriptions and solar subsidies – with some of its promises funded by its proposed capital gains tax on investment property.
Bradford says tying the tax to popular spending promises is “smart politics” but wonders whether the revenue is becoming oversubscribed given the number of promises attached to it.
“The problem is … they really might not get the amount of money they were hoping for, depending on what happens with the housing market.”
With both major parties promising financial relief, Bradford says voters need to consider what happens further down the track. “Unfortunately, it has to be paid for some way.”
Watch or listen to the full episode of The Prosperity Project for more.
The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and financial adviser.
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