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“By comparison with some other countries, New Zealand relies heavily on education and health services and retirement income support provided by governments and financed through taxation. Much government education and health expenditure benefits families with moderate to high current incomes. Much expenditure on superannuation benefits individuals and couples who earned moderate to high incomes during their working lives. Such ‘churning’ of income and the high taxation associated with it does nothing for equity, is economically wasteful and damaged economic growth.

Although there are many issues that need to be considered in designing policies, alternative approaches operate successfully in overseas countries, including Australia. Middle Class Welfare analyses such options and advances positive proposals for reform of the New Zealand welfare state that would better allocate public assistance and allow taxes to be reduced.