Tax Justice Aotearoa is encouraged to see serious talk on tax starting to take shape this election year, with positive steps announced by The Green Party this morning.
“We need tax changes of the type outlined in these policies, which offer an important contribution to the debate about what the best tax mix is for Aotearoa,” says Glenn Barclay, Chair of Tax Justice Aotearoa.
Some aspects of the policy would simply bring Aotearoa in line with international norms, such as tax-free bands at the bottom of the tax scale. “We’re pleased that the Greens’ announcement addresses the impact of the tax system on the least well off in society,” says Glenn Barclay.
“We agree that wealth is not taxed in any meaningful way and policy change is needed to remedy tax inequities, so clearly highlighted by the recent IR research into High Net Worth Individuals,” says Glenn Barclay. “A wealth tax would make a huge difference in addressing this.”
TJA agrees that corporate tax needs to be looked at, whether it is an increase to the base rate or the introduction of an excess profits tax.
“It’s not clear what the best tax mix is for Aotearoa, but we do know real change is necessary to address the tax inequities revealed by the High Net Worth research.”
Fixing the challenges of inequality and poverty as well as climate change, our under-resourced public services and infrastructure deficit, will cost money and it is positive to see policy that seeks to balance the tax settings with new, fairer taxes.
Note: Tax Justice Aotearoa will continue to promote informed tax debate throughout 2023.