$108 Billion. That’s the sum of our money that has been taxed from our incomes, company profits and goods and services.

But Finance Minister Grant Robertson said the lower-than-expected deficit shouldn’t lead political parties to yell out for cuts as there was still a deficit and New Zealand faces “choppy waters ahead”. He’s ruled out tax cuts that “disproportionately support the wealthiest New Zealanders”. National said a “careful” minister would produce “prudent tax relief” and still invest in public services.

Those wealthy NZers who would be “disproportionately support[ed]” are also those who disproportionately provide the bulk of that tax revenue! In fact, the top 3% of NZ income earners (in 2020) paid 26% of all income tax collected. In 2012, the richest 10% of NZ income earners paid 47% of all income tax!

I’d like to keep more of what I earn. I’d like to be able to support my wife and future children with a single income, with minimal government help. I’m happy for a portion of my wages to go to a well-functioning government to wisely spend on things that genuinely make the country a better place.

The Minister of Finance has ruled out tax cuts despite the record take of income tax. Because no matter how much money is coming in, even more is going out under him! Let’s look at some figures of what I reckon could be reduced or eliminated so that we can afford a tax cut – we’re currently looking at a $9.7 Bn deficit, so can we cut $10 Bn from the books? How about we start with the following:

  • Welfare benefits were costing $23 Bn in 2017, and are now up to $40 Bn this year.
    • Jobseeker and Emergency benefit at $3.3 Bn (up from $1.7 Bn in 2017)
    • Sole parent support up to $1.7Bn (up from $1.1 Bn in 2017)
    • Wage subsidy scheme at $4.8 Bn (it was $1.2 Bn in 2020 and $1.1 Bn in 2021)
    • Accommodation assistance at $2.3 Bn (up from $1.1 Bn in 2017)
  • Health expenses are now totalling $30Bn, up from $16 Bn in 2017. Nearly $7 Bn of that is due to health services for COVID-19, including vaccines and managed isolation /quarantine.
  • Educational departmental expenses are up to $2 Bn from $1.2 Bn in 2017. Not sure we need to increase the bureaucrats in the Ministry by that much!
  • Tertiary education funding has increased from $2.5 Bn to $3.2 Bn, for an increase of just 20,000 places. That’s $35,000 for each extra tertiary student.
  • ‘Core Government Services’ departmental expenses have increased from $1.8 Bn to $2.7Bn, the headcount of the public sector increasing a whopping 28%
  • $1.4 Bn has been spent on transport expenses in relation to COVID, including ‘shovel ready’ projects and temporary relief packages
  • $4.2 Bn on “COVID-19 Resurgence Support Payments” whatever they are
  • $135 Million on the “COVID-19 Cultural Sector Response” from heritage, cultural and recreation expenses
  • $1.6 Bn on the Emissions Trading Scheme

Now, I’m well aware that inflation since 2017 has been just under 20% in total. And wage inflation has driven some of the increased tax take, and government departments will therefore need to increase their expenditure to not only pay their people, but also to purchase other services which are now more expensive. Which increases inflation, leading to employees seeking higher salaries, and around the circle we go!

But really, does the government need to be spending an extra $52 Billion compared to 2017? The 2017 budget was $76 Bn of spending. Under Labour, that has grown to $128 Bn this year. If the budget had simply kept in line with inflation, it would only be $91 Bn.

I reckon there’s an easy $20 Bn to be saved from just reducing or outright eliminating some of the increased spending above. And then all of a sudden government books are in surplus, and maybe we can reduce the tax burden on hard-working, middle-class NZers like me.