New Zealand is facing the possibility of the largest change in taxes since the introduction of GST in 1986.
The changes coming may overshadow the significance of a goods and services tax.
Former Labour finance minister Sir Michael Cullen has started a review on the future of tax and says the Tax Working Group he chairs remains open-minded about where it will lead.
Taxes on wealth, capital gains and unhealthy products have all been keenly debated since the call for submissions on March 1.
The group has now released a submissions background paper which Sir Michael says aims to provide more context to these issues and many more over the next six weeks.
Labour has toyed with a capital gains tax for many years, sometimes in support of imposing the tax before backing away when voter sentiment goes against it.
Sir Michael now says capital gains tax and land taxes will be among the most contentious issues under discussion.
An inheritance tax has been ruled out and the family home is completely out of the mix.
Other options being considered include environmental, financial transactions and wealth taxes. Stamp duty is also likely to be on the agenda.
Supporters of capital gains and wealth taxes say it is important the rich pay their fair share but direct income from investments is already taxed.
New Zealand has a capital gains tax on property speculators in the form of a bright-line test Labour is extending from the current two years to five.
The working group will go back to the Government with proposals before the 2020 election. Tax was a major election issue for Labour before it realised it had a chance of winning last year's election. Prime Minister Jacinda Ardern took the chance to put tax on the backburner, instead appointing a highly admired Labour finance man to the important task of redefining the tax system.
National made a mess of its tax argument before the election by claiming Labour was putting tax up by cancelling National's planned tax cuts. In retrospect, National should have cut taxes earlier rather than talking about it, thereby challenging Labour to put them back up.
BusinessNZ and the Council of Trade Unions are urging their catchments to make submissions.
Tax changes are infrequent and can bring significant changes for business and the economy. The review comes at a time when technology advances are affecting both business and business-revenue gathering.
Also important is the future funding of New Zealand's social infrastructure. With a growing older population, coupled with still-high net migration, tax will play a large role in the funding of health and education.
But with higher or more taxes comes the temptation to cheat. Tax experts use their skills to help clients avoid paying the maximum of tax in a high-tax regime. And the ones who benefit the most are the wealthy.
GST captures everyone but the less well-off pay a higher proportion of their income in GST.
These are well-known problems which lower tax levels are said to solve.
Sir Michael is already under fire from National with claims of having his hands in the pockets of hardworking Kiwis. National is calling for the discussion paper to focus on reducing tax in some areas rather than just increasing it in others.
There will be a distinct choice for Sir Michael and his working group - either be content to leave the maximum amount of money in the pockets of wage and salary earners, or put up taxes and pay a social dividend through maintaining or increasing public and social services.
For Labour, the choice will be clear. There is a general resentment against what it sees as National rewarding its rich supporters through lower tax at the expense of the lower paid. New taxes will surely be recommended before the next election.
