“Labour’s tax plan is divisive populism and it will raise little revenue,” says ACT Leader David Seymour.

“Jacinda Ardern likes to say we’re all in this together, but Labour is picking on a small group of New Zealanders to fund the Covid-19 recovery.

“Labour is telling young New Zealanders ‘if you study hard, get good grades, get a good job, save money, and invest wisely, we’ll tax you harder’. That’s the wrong message.

“However, almost no New Zealander will pay 39 percent on income above $180,000 and the tax change won’t raise anywhere near the $500 million Labour says it will. Even if it does, that amount of revenue won’t begin to repair the fiscal damage Labour has done.

“Today’s announcement shows Labour has no plan to get back to surplus and repay the debt.

“Labour is continuing its spending splurge as if nothing has changed. It has thrown money at ideological projects and without a plan.

“ACT says we need to focus on the wasteful, out of control spending.

“Labour was elected with a forecast surplus of $6 billion for 2020. Even before Covid-19, and with $3 billion of extra tax, it was down to a $1 billion deficit.

“Instead of fixing the roof while the sun shone, it got a few weeks’ good economic weather and decided to sell the roof altogether.

“We don't need to increase taxes on New Zealanders. ACT’s Alternative Budget and Debt Destroyer show how we can reduce wasteful spending to balance the budget in 2024 while also cutting taxes to stimulate the economy.”