Mike Hosking: This tax and spend Government will make us pay more

Here's the big question around Sir Michael Cullen's tax working group: I was reassured to hear him say on the show yesterday that ultimately this isn't about more tax, it's about different tax.

In other words, the overall tax take doesn't go up. Let's take him at his word. Let's also realise, or accept, that this group is about scoping tax, looking at options and making recommendations.

If you're a neutral operator, you have to look at the variety of tax options out there if you are to be seen to do your job properly. So on that basis, when we hear the words "wealth tax" we should not panic because it is not Cullen who implements ideas, it is the government.

But - here's where this gets slightly worrisome - where in all honesty do you think this is all heading? What government sets up a tax working group with a view to taking less tax?

Remember also the dreadful trouble Labour got themselves in during the election campaign over what taxes were in and what were out. And when those new taxes were to be implemented.

They had to back off halfway through the campaign when it became transparently obvious they had misled the public on implementation dates. So the working group, whose final report is due in a year, will give the Government the material to work out what they can bring to the party by the next election.

Now make no mistake: this is a tax and spend government. This is a government that sees the need to tax more, to shift the tax burden and spend more.

The mere fact Cullen heads that group speaks volumes. All of this is perfectly legitimate; governments are allowed to develop policy. And present it for consideration in the election. And if they get the support, they have the mandate to implement that policy but here's where it will go horribly wrong for them. And it's why they tried to sneak some of it in during the last campaign - they know high tax doesn't win votes.

They also know, as do we, this is not a country short of money. This is a country that has a surplus in the billions, or at least it did until this lot started spending it.

Now the argument that can quite rightly be put up is that if you can't make ends meet in these days of economic success then God help us all, when the tide turns and our ability to be taxed as heavily as they might like becomes impossible. And this is the broad problem with left-wing governments, they spend too much in the good times, leaving nothing for the lean times.

And all the programmes they invented and inflated are left high and dry when the tax take shrivels up, leaving them with two options: cuts or borrowing.

Borrowing is their traditional avenue of fiscal ineptitude. This country does not need to borrow if - if - we don't go nuts with the money now. Which sadly is where this tax working group comes in: its job is to find more money. More tax and more taxes from which to raid our pockets. Mark my words.