Labour commits to tax hikes

The Herald reports:

Tax is set to be a major battle line in the 2017 election after Labour’s Grant Robertson signalled his party would increase some taxes to pay for its policies – a stark contrast from National’s expected tax cut platform.

Mr Robertson addressed the issue of tax in a pre-Budget speech on today, saying before the election he would set out a tax policy including measures to ensure Labour could raise the revenue needed to pay for its promises in health, education and housing – a clear signal some taxes would be raised.

Labour MPs have already demanded or promised an additional $2.7 billion a year of annual spending. That alone (and this is before they even get into their election manifesto) would require everyone earning over $70,000 a year to pay 45% tax on income over that level. Or alternatively they’d need to increase GST to 17.5%.