Ardern Uses Inflation as Justification for More Central Planning
November 6, 2022
Labour has been critical of National’s promise of tax cuts as a cost of living solution – especially its plan to cut the top tax rate.
Ardern also said the support through childcare subsidies and Working for Families was a way to target those who needed it most, without having a significant impact on inflation.
The measures use existing programmes – unlike the temporary cost-of-living payment, which was administered by Inland Revenue and criticised because of people overseas receiving it if they had not changed their address with Inland Revenue.
At a press conference after her speech, Ardern said cost of living was “front of mind for Kiwis”, and one of the biggest costs they faced was childcare.
It was better than a tax cut because it was not inflationary, Ardern said of the new childcare payment announcement.