This is an open letter on tax

We think Aotearoa needs more tax to respond to floods and cyclones, to improve services like health and education, to tackle inequality, and to support families who are struggling. And we think this additional tax should be coming from those of us who can afford it most.

To the public and the politicians of Aotearoa New Zealand,

We write as people who are frustrated with how much tax we pay. We want to pay more.

As people leading financially comfortable lives, we might be expected to be anti-tax. But we recognise tax as a shared contribution to our collective success. It funds everything from the teachers who give our children a great start, to the DOC rangers who look after our environment, through to the health care professionals on whom we all rely.

As Cyclone Gabrielle has made horribly clear, the cost of responding to the climate crisis, repairing the public realm and future-proofing our infrastructure will only increase. And that will require a bigger tax contribution from those who can afford it.

Taxes also pay for the social services and payments that assist our communities, including superannuitants, families and individuals needing support. Looking after each other is the mark of a civilised society, and tax is one way to pay for that.

Yet currently one child in seven lives in poverty, leading to individual misery and an economic burden – in health and other problems – of at least $10bn a year, according to Infometrics. We would willingly pay more tax to help lift families out of poverty and ensure everyone thrives – an investment that would pay off many times over.

Some of us have built businesses from scratch, and celebrate profit when it serves the public good. But we know that in our working lives, we have benefited from the infrastructure paid for by the taxes of past generations: the roads, the hospitals, the schools. We want to pay that forward, to replenish the collective pool of resources from which we have drawn, so that future generations can have the same opportunities.

Tax is one way we can build a better world. We are proud to pay it, and ready to pay our fair share. Yet Inland Revenue research shows that nearly half the country’s wealthiest people pay a lower tax rate than minimum-wage workers. Often that's because much of their income is capital gains, which aren't usually taxed.

So we call on everyone who lives and works in Aotearoa New Zealand to back a tax system that asks more from those who can most afford it. And we urge our politicians to make that a reality.

Sincerely,
The signers

The Signatories

Thank you to everyone for the ongoing support being given to the open letter on tax. The list below consists of the original 97 signatories on the day of the project's launch on 11 May 2023.

This open letter on tax has been supported by Tax Justice Aotearoa and Oxfam Aotearoa.