Time to tax wealth as well as work
Sunday 26 June 2020
Tax Justice Aotearoa welcomes the forward-thinking in the Green Party’s Poverty Action Plan released today.
“For too long, people who work have been contributing more to our country’s future through taxation than people with large amounts of net wealth” says Louise Delany, TJA Chair.
“We congratulate the Green Party for taking on the question of how we fund a system that gets every Kiwi a decent life, with a warm home and nutritious food.”
TJA’s election manifesto recommends those who have net wealth (ie: after debt is subtracted) over $2 million should contribute 2% of this wealth to help fund a world-class health system, education, and other public services that mean we all thrive.
Alongside this, TJA recommends that the income tax structure enables those who earn more to contribute more, specifically by introducing a new top income tax bracket of 50% for people who earn over $150,000 a year. Aotearoa New Zealand’s top tax rate is low in comparison with other similar countries across the world. Adding in at least one new, higher top tax rate will help New Zealand grow greater resilience to weather the Covid-19 storm, economic recession, and future challenges from global heating.
TJA also proposes greater transparency in our tax system and a lifetime wealth transfer tax to sit alongside a net wealth levy.
“The Green Party’s Poverty Action Plan makes a solid start to the conversation we need to have in Aotearoa New Zealand about our tax system and how we can get it to work for the benefit of all. TJA looks forward to other political parties’ tax policies and robust discussion about how we build a country where everyone flourishes.”
Wednesday 24 July 2019
New Zealand needs to stop multinational tax avoidance
New Zealand needs to stop multinational tax avoidance
New research shows that multinational corporations continue to avoid paying millions in tax in some of the world’s poorest countries. Tax Justice Aotearoa says New Zealand has a role to play to help stop this immoral practice.
Research published yesterday by the Consortium of Investigative Journalists – the organisation who brought the Panama Papers to the world’s attention two years ago – shows multinational corporations are continuing to use Mauritius as a tax haven.
“It is disappointing how little progress has been made since the Panama scandal to stop this behaviour,” says Louise Delany, Chair of Tax Justice Aotearoa.
“What we need now is for the New Zealand government to join with others to change the global tax rules to make them fair. New Zealand can support a global minimum effective tax rate requiring all multinationals to pay a fair share of tax, wherever they work.”
“Yet again we see multinational corporations manipulating the rules to siphon resources from the world’s poorest countries. These corporations artificially lower their profits so that they can get out of paying tax they owe. This is money these governments desperately need for health and education.”
Whilst technically legal, the behaviour is beyond immoral. Change is needed, and New Zealand can and should play its part to get a global minimum rate. This would make sure corporations contribute their share of tax anywhere they operate, just like the citizens of those countries do.
New Zealand can also act to ensure greater transparency about the behaviour of international companies operating here. Public registers are needed, so we all know exactly who owns and who owes what in the maze of companies and trusts that are used for tax avoidance.
Wednesday 17 April 2019
Statement on CGT decision: Tax Justice Aotearoa
Tax Justice Aotearoa New Zealand is deeply disappointed that the coalition Government has not moved on capital gains tax and has failed to take up the challenge.
We are also disappointed at how little effort was made, if any, to seek or build a wider mandate for taking this once in a generation opportunity.
Tax Justice Aotearoa New Zealand will continue to advocate for better taxation of wealth in this country, given its validity as a known way to tackle wealth inequality is so widely accepted.
We will take time now to review the measures that were promised today for making inroads towards a fairer tax system, and other strategies.
Tuesday 16 April 2019
Tax Justice Aotearoa concerned by removal of billboard
Tax Justice Aotearoa is disappointed with today’s sudden removal of its billboard promoting the fairness of a capital gains tax.
Spokesperson Louise Delany says that the removal of the billboard prevents an important campaign message from being heard, which is that a capital gains tax would introduce more equality to the tax system.
“A mature democracy depends on a variety of voices, and we are attempting to bring some diversity to the current debate. It’s disappointing to see that has been closed down. Is it becoming harder to mention ‘tax’ in the current environment without fear of censorship?”
Delany feels that the message was not particularly controversial and simply reflected the recommendations of the Tax Working Group. In fact a capital gains tax is quite routine among those countries that Aotearoa New Zealand usually compare itself with.
The Tax Working Group made the point that inequality is a major issue in New Zealand, and that our tax system is one way we can use to address that. Tax Justice Aotearoa feels that the removal of its billboard reflects the inequality of influence in today’s society. To date the most publicised opinions have been those opposed to a capital gains tax – many of whom have vested interests behind their opposition to the proposed reforms.
“If anything this act serves only to shed more light on the divide between the ‘haves’ and those struggling to ensure their voices are heard.” ENDS
Sunday 14 April 2019
Facing up to the facts on a capital gains tax should be welcomed
Any move towards including a capital gains tax within wider tax reform would be a step forward in achieving a fairer tax system says Tax Justice Aotearoa New Zealand.
“Capital gains taxation would be a good thing for all New Zealanders and ensure we join the rest of the world in treating all income sources in the same way. Any suggestion otherwise ignores the role that tax plays in underpinning both a fairer society and sustaining and growing public services,” say spokepersons Louise Delany and Paul Barber.
“Indexes like the 2018 Commitment to Reducing Inequality Index (www.inequalityindex.com) are ample illustration that New Zealand has been severely lagging behind in terms of moving to a more progressive tax system, a system where every person contributes according to their income. This consensus view of the Tax Working Group was evidence-backed common sense.
“Given the persistent gap between the richest and poorest, the lack of commitment to taxing wealth is a Trojan horse for the persistence of truly damaging levels of inequality.
“Our campaign in support of capital gains taxation as a sound element of much-needed tax reform has been a clear signal of the balance of voices needed in any serious debate about the direction of our future tax system.
“We have been overwhelmed by a clear hunger for tax justice from members of the public who form a ‘silent majority’ for change – with almost 2000 signing a petition within the last week with minimal publicity. Importantly more New Zealanders have also been hearing expert voices giving balance to the debate, such as economists Tim Hazledine and Ganesh Nana and accountancy specialist Alison Pavlovich.
“Attempting to diminish the scale of public support for making this change only serves to obscure and confuse the fact that the vast majority of New Zealanders stand to benefit from meaningful tax reform.
“We need agreement across the political spectrum on how all members of society can best contribute to common aims. Looking at other societies around the globe right now, we can see how inequalities threaten economic and social stability. What the members from the community-based organisations in our network want to hear – from all political parties – is how much they have the interests of fairness at heart. That’s what really matters at the end of the day – necessary change for ordinary New Zealanders.
“Achieving a fairer tax system will strengthen rather than weaken New Zealand. Fairness is the Kiwi way. It’s time for a capital gains tax”.
Email: contact@taxjustice.nz
For further information:
Website: https://taxjustice.nz/wp-content/uploads/2019/04/CGT-Good-Start-V5.pdf
Petition: https://www.change.org/p/tell-jacinda-we-want-a-capital-gains-tax-it-s-time-to-join-the-modern-world
Facebook: www.facebook.com/taxjusticeaotearoa/
Twitter: @TaxJusticeNZ
Tuesday 9 April 2019
The opportunity for major tax reform must not pass us by
Tax Justice Aotearoa New Zealand and supporters have been heartened by positive responses to the launch of its first campaign in support of overdue tax reform – including the call to introduce a capital gains tax.
“Since announcing our call for a balanced debate on tax reform yesterday outside Parliament, we have already seen more than 1000 voices added to the petition asking for a capital gains tax” say Tax Justice Aotearoa NZ spokespersons Paul Barber and Louise Delany.
“Our position is simply that the existing tax system is unfair and that the Government needs to take direction from the options presented by the Tax Working Group to fix it.
“Along with other supporting organisations, we believe that the ‘silent majority’ of ordinary communities and workers have been at risk of being drowned out by vested interests that are resisting tax reform.
”As responsible citizens in an open democracy we are committed to drawing public attention to the fundamentally important role that a wealth tax can play to ensure fairness in the tax system – as is the common practice across other developed OECD countries including Australia.
“The Tax Working Group – after much sifting of evidence and debate – concluded that a tax on capital income was the right choice for modern New Zealand – and this is supported by the substantial arguments that have been put forward in favour of such a tax by experts like Tim Hazledine of Auckland University and Alison Pavlovich of Massey University [see further information links below].
“Fairness is the Kiwi way. Now is the time for a capital gains tax”.
The organisations who support the Tax Justice Aotearoa NZ tax reform campaign – which proposes a range of tax measures in addition to a CGT, such as changes to tax rates, lower GST and pollution taxes – currently include the Public Health Association, New Zealand Council of Christian Social Services, Council of Trade Unions, Public Service Association, Hui E! Community Aotearoa, Equality Network, Closing the Gap, United Community Action Network (UCAN) and Poverty Action Waikato.
ENDS
Contact details:
Louise Delany: 027 2357207
Paul Barber: 027 4732006
Email: contact@taxjustice.nz
