National’s newly announced tax package actually makes the tax system fairer, for a number of reasons.

It ensures that wage and salary earners in the top tax bracket – like many teachers, nurses, doctors and police officers – do not pay higher rates than people who can structure their business affairs for tax purposes.

It makes the taxation of different investments more equitable, for example by decreasing taxes on savings vehicles and increasing the effective tax rate on property investments.

It closes Working for Families loopholes, makes sure qualifying company shareholders pay the right amount of tax, and prevents abuse of the GST system.

It gives IRD the resources to crack down on people who are not paying their fair share of tax, or evading it altogether.

That adds up to a very fair tax package.