Labour Party leader Chris Hipkins has called for a better way to balance our tax system.

Delivering his State of the Nation speech earlier today, Mr Hipkins says now is the time to have the tax debate, despite Labour ruling out both a wealth tax and a capital gains tax last year.

He pledged to spend the next two years releasing discussion documents, to get them best prepared for the next election.

Mr Hipkins says it's something that needs to be taken more seriously, especially when the IMF speaks out.

"The reality is, salary and wage earners are shouldering a disproportionate share of the tax take, and we should be making sure that it's more evenly balanced."

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