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John MacDonald: No one wants to pay more tax, but...

Author
John MacDonald,
Publish Date
Wed, 15 Apr 2026, 12:47pm
Photo / Stockxchng
Photo / Stockxchng

John MacDonald: No one wants to pay more tax, but...

Author
John MacDonald,
Publish Date
Wed, 15 Apr 2026, 12:47pm

Do we need more taxes? 

There are two ways we can look at it. Does The Government need more tax revenue? Yes, I think it does. Which is why those tax cuts after the last election have backfired so badly. 

And do we want to pay more tax? When push comes to shove, probably not. But that’s human nature, isn’t it? 

But, if we look beyond human nature - beyond gut reactions to the tax question - maybe, one day, enough people will accept that we’re just going to have to pay more tax. Like it or not. 

Which is exactly what a tax lobby group is saying today.  

Tax Justice Aotearoa is saying New Zealand needs a capital gains tax, an inheritance tax and a wealth tax. For several reasons. 

First of all, the fuel crisis and climate change. They say the government needs more revenue to cope with these kinds of things. 

The other reason it wants a capital gains tax, an inheritance tax and a wealth tax is to shift the tax burden. To get high income earners paying more tax and to get low-income earners paying less. 

Tax Justice Aotearoa also says our deficits are the problem. And the problem isn’t going to be fixed until we all start paying more tax. 

It says deficits limit what we can do about the fuel crisis. As The Government has said, the $50-a-week tax credits for low-to-middle income earners are as much as it can afford. 

And deficits mean The Government is limited in what it can do in response to climate change. 

Example: no payouts for people who have to pack up and move because of things like sea level rise. 

Former Council of Trade Unions Economist Bill Rosenberg is a member of this lobby group and he says: “It’s becoming obvious governments cannot continue to function properly and do the things that people expect of them without more revenue, so it is inevitable we have to debate these things.” 

And I agree with him. 

But, of course, show me a politician brave enough to stand up and advocate for you and I paying more tax, and they’ll be someone with the shortest political career in history. 

Because who is going to vote for that? 

Maybe we will, when we realise the inevitability of it. 

Yes, it’s easy to bang on about not wanting to pay more taxes because governments waste money, anyway. 

But do we want the “smell of an oily rag” set-up we have at the moment? 

Or, do we want a country that can afford to deal with things like oil shocks and the climate crisis? 

Tax Justice Aotearoa says if that’s what we want, then the government is going to need more revenue. And i agree. Even though I don’t like the idea of paying more tax. 

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