Dear Supporter,

Jacinda vs Judith

Tonight at 7pm Jacinda Ardern and Judith Collins face off in TVNZ's first election debate. It's hosted by John Campbell and you can watch it on TV 1.

At the same time, another debate takes place in Queenstown: each parties' finance spokespeople tackle issues affecting the economy. This debate is hosted by Tova O'Brien and should be streamed on Newshub's website.

Here are the questions we want to see asked tonight on behalf of taxpayers. (For example: what will happen with the land at Ihumātao?)

We'll be reacting to the leaders' debate live on Twitter – and watch this space for highlights from the finance debate.

Here's what taxpayers need to know about the last week of headlines

The last seven days have seen some major developments for taxpayers.

Last Wednesday, we learned government debt is set to spike to about $150,000 per household in 2034: 

Read (or listen to) Joe's breakdown of the numbers here.

Then on Thursday, Stats NZ released figures proving collapsed economic output for the June quarter, meaning New Zealand is now formally in recession:

Read my comments to media here.

Bold tax plans from the Opposition

On Friday, Judith Collins announced National's bold new tax relief policy: a large (but temporary) shift in tax brackets:

The policy would last for 16 months, during which National says the average worker will save $3000.

Here's what Jordan had to say:

There are two ways the Government can stimulate the economy. The Government can allocate our money based on backroom decisions – think James Shaw and his Green School – or we can let Kiwis spend and invest for themselves by reducing taxes. Australia, the UK, and many of of our trading partners are choosing the latter. The National Party is now ensuring that Kiwis too have that choice.

Finally, as if the week wasn't busy enough, the ACT Party released its alternative budget, which Stuff gave the dramatic headline, "David Seymour plots radical overhaul of state, slashing spending over a decade".

ACT's budget takes the Debt Monster head-on, paying down debt much faster than either Labour or National's plans. But it also makes room for permanent income tax relief and a temporary cut to GST – we've been pushing for that idea too.

How can we cut tax and slay the Debt Monster?

Cutting taxes during a recession can make the Debt Monster look bigger in the short term. But well-targeted tax relief works to get the economy out of recession and growing in the long term.

That's crucial: a larger economy means less debt relative to GDP, and creates a larger tax base to pay down debt.

But there are other ways to grow the economy that won't cost the government a cent in revenue up-front. Our latest briefing paper outlines two "regulatory taxes" that should be relaxed along with GST and income tax.

Specifically, we say that the Government should (at least temporarily) relax regulations in a way that makes it easier for employers to hire new staff, and makes New Zealand more attractive to foreign investors.

Click here to read our paper, Growing out of it: Five policies to encourage growth and conquer debt.

Phil me once, shame on you. Phil me twice...

Phil Twyford says he will build light rail in Auckland if Labour wins the next election.

Of course, he promised exactly the same thing at the last election and, after spending two and a half years in discussions and $5 million of taxpayers’ money commissioning reports, nothing has been decided, far less built.

A Minister reaches a low point when he goes for re-election solemnly vowing to implement an old flagship policy ‘for real’ this time around. It was promised previously, it was not delivered. But perhaps it’s for the best: Twyford’s record of expensive policy failures suggests a tram down Dominion Road would terminate in hell.

Click here to read the rest of my op-ed celebrating Phil Twyford's achievements in waste and disappointment.

All the best,

Louis Houlbrooke Campaigns Manager New Zealand Taxpayers' Union