A coalition of organisations led by Tax Justice Aotearoa is disappointed that Prime Minister Chris Hipkins has ruled out a wealth tax or capital gains tax.
The Fair Tax Coalition says that significant changes to our tax system are still needed to address inequality and climate change, and to better fund public services.
“After commissioning research by IR which clearly demonstrated the deep unfairness of our current tax settings earlier this year, we had hopes the Labour Party would seize the moment for significant tax reform,” says Glenn Barclay, Chair of the Fair Tax Coalition, which is running the Better taxes for a Better Future campaign this election year.
"The IR research, the significant Open Letter signed by almost 250 wealthy and financially comfortable New Zealanders, and a poll that indicated majority support for a wealth tax suggested this would be a good time for change,” says Glenn Barclay.
"The Prime Minister has also said there is no mandate for changes to our tax settings, but this evidence suggests otherwise.
“Ruling out wealth and capital gains taxes strips the government of two of the main tools to address inequality and poverty, support better public services and to help address climate change.
“It also comes after the Prime Minister said earlier in the year that he wasn’t in the business of rule-in rule-out politics,” says Glenn Barclay.
The Better taxes for a Better Future Campaign was launched in June with the support of 18 partner organisations. It is seeking a tax system that:
- Is fully transparent.
- Ensures people who have more to contribute make that contribution: that we gather more revenue from wealth, gains from wealth, all forms of income, and corporates.
- Makes greater use of fair taxes to promote good health and environmental health.
- Addresses the tax impact on the least well-off in our society.
- Raises more revenue to enable us to address the social, economic and environmental challenges we face.
“Despite this setback, it won’t stop our campaign for a tax system that asks more of those who can afford it and less from those who cannot,” says Glenn Barclay.