EDITORIAL: We know there’s a growing gap in this country—and it’s not just between the rich and the poor.  

It’s between what we say we want, and what we’re actually prepared to do to pay for. 

Because right now, the numbers are starting to bite. 

Treasury is warning—loudly—that we are heading into a future where fewer workers supporting more retirees. We know that - it’s fact. 

And now, Inland Revenue is backing that up, saying quite clearly: if we don’t change course, the books don’t stack up. Debt will grow. Pressure will build. Something will have to give. 

And here’s the uncomfortable truth—there are only two levers you can pull. 

You either spend less… or you tax more.  

Now look around.  

We’ve got around 165,000 people on an unemployment benefit. 

We’ve come through COVID with a massive debt hangover.  

Infrastructure costs are blowing out. Health, pensions, everything—up, up, up. 

So I’ll ask the obvious question: are we really going to save our way out of this? 

I don’t think so. 

And that’s why this conversation that politicians keep avoiding—we need to have it properly. 

Because Inland Revenue has already laid it out.  

They say GST should go up. Now think about that for a minute and don’t let it shock you too much. 

They say capital gains should be looked at. They say the system needs to be more flexible so governments can pull in more revenue when they need it – like now. 

And whether we like it or not… they’re probably right. 

Let’s take GST.  

We are at 15% in New Zealand.  

Now compare that to Europe—where consumption taxes are often higher.  

The United Kingdom runs a VAT of 20%. Germany? 19%. France? 20%.  

The Nordic countries—Denmark, Sweden—around 25%. 

So, the idea of moving GST from 15% to 17% or 17.5% here—it’s not radical internationally.  

It’s actually pretty modest. 

Yes, it hurts and it hurts everyone. But it’s simple. It’s efficient.  

And if you pair it with targeted support—cash transfers or tax relief—for low-income earners, you can soften the blow where it matters most. 

Then there’s the old capital gains tax. 

Nobody wants to talk about the horrible old capital gains tax. 

And I know—people hate hearing it. But Inland Revenue is blunt: not taxing capital gains creates distortions. It lets people shift income into areas that aren’t taxed, and that weakens the system. 

So why not be surgical about it? 

You don’t touch the family home. We don’t want to hit ordinary Kiwis.  

But if you’re dealing in assets—property, investments—worth over $2 million, $2.5 million… then yes, maybe you should be paying capital gains tax. 

Because here’s the reality—we’re in a hole. 

And when you’re in a hole, you don’t get out by pretending everything’s fine. 

Some people have done extremely well, even through COVID, even through recession. Meanwhile, others are barely hanging on. 

So yes—maybe company tax edge up. Maybe high-end capital gains are taxed.  

Maybe GST nudges higher. 

None of it is popular. 

But this is the point—there is no pain-free option anymore. 

The real question is: are we prepared to take a bit of pain now, and alot of us have had that pain… to avoid a much bigger one later? 

It’s coming, we can’t afford it, and we can’t get our spending down. 

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