Herald on Sunday editorial: Don't leave voters guessing, Jacinda

Election campaigns have a rhythm of their own.

The penultimate week, which starts today, is frequently a turbulent one in the polls.

It is as though voters entertain second thoughts, flirting with the other side of the argument.

This is the week in which those who have been intending to vote Labour look past the party's popular new leader and ask more searching questions of her.

Such as, what assets might become taxable if a post-election working party recommends it?

Might she restore inheritance taxes, death duties, gift duties?

Will property and share portfolios be taxed on annual increases in value or only if they are sold for a capital gain?

It is brave of a political leader to even declare an intention to set up a tax working group if elected, let alone leave so much of its work open to conjecture.

In one sense she is to be applauded.

If the working group is to be worthwhile, it needs to be able to consider all possibilities.

But she is denying voters information that is important to their decision.

At the very least they have a right to know the direction of her party's thinking.

It is not credible that it would adopt a policy to "rebalance" taxes on assets and incomes without particular assets in mind.

We know it is thinking of more than investment houses because it has announced detailed tax policies for those.

Capital gains would be taxed on sales within five years of purchase, and taxed at the seller's top income tax rate.

And buyers of rental property would gradually lose their ability to deduct losses on the property from tax on other sources of income.

This should stop them borrowing more than rent can cover and help to keep house prices stable.

Jacinda Ardern assures voters these taxes will not apply to an owner-occupied home or its land if a land tax is recommended.

On another subject, she has also ruled out an increase in the age of entitlement to superannuation.

That was not brave or wise. She did it when put in the spot in TV3's leaders debate.

She has painted herself into the same corner that kept John Key from raising the age in line with life expectancy, as other countries have done.

This could be Ardern's most testing week. The novelty has gone, she is now familiar to the voters and they need more policy substance than Labour has offered so far.