Shane Te Pou: Christopher Luxon and Nicola Willis’ tax package out of touch with those feeling the squeeze

Christopher Luxon and Nicola Willis refuse to engage with serious criticisms of their tax package, says Shane Te Pou. Photo / Mark Mitchell

Opinion

OPINION

An increasingly beleaguered Christopher Luxon and Nicola Willis have spent the past week and a half trying to claim their tax package adds up and delivers for the “squeezed middle”, despite what numerous economists, trade experts, and anyone with a calculator says.

It’s been surprising to watch Luxon and Willis refuse to engage with the very serious criticisms of their ideas from politically neutral experts who don’t have an agenda to push. They’ve essentially stuck their fingers in their ears, refusing to listen to the questions and saying, “Trust us, we know what we’re doing.”

When National mucked up their tax plan last election, they acted responsibly. They fessed up, went back to the drawing board and fixed the issues. This time, they’re just trying to brazen it out. We expect better from people who want the keys to the Beehive.

When the Council of Trade Unions launched an ad campaign labelling Luxon “out of touch” for wanting to cut Fair Pay Agreements, free prescriptions and tax cuts for landlords, National spat the dummy. But that overreaction just tells you they know it’s a criticism that hits home.

Where’s the lie, though? National does want to get rid of Fair Pay Agreements. It does want to put prescription charges back on disabled people, people with chronic illnesses, people with cancer, pregnant women, and most people. It does want to cut taxes for landlords. If National finds it offensive to have its own policies put on a billboard – that’s not the CTU’s fault.

So, who’s really standing up for those feeling the squeeze?

National’s cuts are good for people on decent incomes and people who own rentals. People like me, in other words.

My home’s value might even go up if foreign buyers start buying up the neighbourhood under National’s new policy.

I get why, politically, it looks like the smart play to aim policies at the people of well-off suburbs – the so-called mortgage belt. We’re more likely to be swing voters. We’re more likely to have the money to make donations. We’re more likely to decide who wins an election.

But I think Kiwis are smarter than that. We’re not going to sell our votes for a few bucks a week. If we’re really worried about the squeezed middle, it isn’t me and my neighbours in leafy suburbs.

The squeezed middle is the retail workers, the fruit pickers, the renters, people with disabilities, and students. They’re the ones who live with little to spare, and who hurt when the squeeze comes.

My whānau back in the Bay, they don’t do so well under National’s plan. Tax cuts of $2 a week don’t go far. Especially when the $5 charge goes back on prescriptions, free public transport for kids gets scrapped, and the minimum wage rise is curtailed.

Seems to me, it’s the CTU that’s standing up for the people feeling the squeeze.

The unions are helping workers negotiate Fair Pay Agreements. These deals are going to stop the race to the bottom and boost wages for bus drivers, hospo workers, cleaners, supermarket workers, and many more. A decent pay rise every year is worth much more than a small tax cut once a decade.

Labour’s standing up for the squeezed too, with free dental, cheaper fruit and veges, public transport discounts, and 20 hours ECE for 2-year-olds. Most importantly, Labour’s committed to continuing its record of low unemployment and boosting wages, especially the minimum wage. Good jobs and good wages – that’s how people get ahead, not the occasional tax cut lolly scramble, which always seems to mostly go into the pockets of the well-off.

Here’s my message for politicians this election:

I don’t need a tax cut. My rentals don’t need a tax cut.

I especially don’t need a tax cut that’s paid for by cutting public services and letting in foreign buyers to snap up our homes.

Focus your attention on the people who are really feeling the squeeze. Focus on quality, accessible, free public services that people need. And focus on protecting the environment we will rely on.

Then, you won’t get labelled “out of touch”. Because you won’t be.

Shane Te Pou (Ngāi Tūhoe) is a commentator, blogger and former Labour Party activist.