National's Tax Freeze Tightens Grip on Public Services
The New Zealand Parliament is gripped by what can be described as taxaphobia - an irrational fear and compulsive opposition to taxes. Both major parties have joined ACT in assuming that voters share this phobia, despite evidence suggesting most people understand the need for taxes to fund public services.
A bed tax, which would help fund tourism facilities, has been touted as a way to promote user-pays rigor. However, National's sudden opposition to this tax has sparked debate over the party's true intentions.
Experts point out that by freezing rate increases below inflation and opposing new taxes, National is essentially protecting its wealthy donors from paying their fair share of tax. The median effective tax rate for high-wealth New Zealanders is just 8.9%, compared to 17.9% for wage-earning Kiwis.