Reaction has been swift across the political spectrum to Labour's proposed new top tax rate for high-income earners, with ACT calling it "divisive populism" and the Greens labelling it "tinkering".
On Wednesday, Labour's finance spokesperson Grant Robertson said the new rate would kick in for the 2 percent of Kiwis with incomes over $180,000.
This represents an extra six cents in the dollar on any income earned above $180,000 - with no impact on any income earned below that.
Green Party co-leader James Shaw said what while the proposed tax rate shows Labour moving towards a more progressive income tax system, it's not addressing the growing gap in wealth and inequality.
He also warned it wouldn't raise enough revenue to pay for the necessary response to the COVID-19 crisis.
"What is being proposed by Labour is long overdue, but it is tinkering that won't address the long-term challenges facing Aotearoa.
"The Greens' tax plan is a roadmap towards a fairer, more equitable Aotearoa. With the Greens in Government, we will push for taxation policy that truly addresses the challenges we face, so everyone can live with dignity."
Shaw is calling for a wealth tax for those with a net worth over $1 million, and two new top income tax bands set at 37 percent on income over $100,000 and 42 percent on income over $150,000.
ACT Party leader David Seymour criticised the plan, calling it "divisive populism" that will raise little revenue.
"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," he said.
"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."
Instead, Seymour is proposing a temporary cut in GST to 10 percent, and a permanent middle-income tax cut from 30 percent down to 17.5 percent.
And National's finance spokesperson Paul Goldsmith warned "this is just the beginning".
"Labour will eventually widen the net and come after middle-income earners. Labour has predictably gone back to old habits after the failure of its capital gains tax this term.
"It opens a door for tax avoidance that we haven't seen for many years, which brings into question Grant Robertson's revenue estimates.
"National won't increase taxes and won't introduce any new taxes."
