National letting wealthy tax avoiders off the hook again

The National Government has failed to stop high income earners from avoiding paying their fair share of tax, the Green Party said today.

IRD released aggregated tax data last week which shows a suspiciously high number of people last year declared their income just before the top tax rate threshold at $70,000. The (highlighted) spike is strong evidence of tax avoidance behaviour. (The lower spikes represent welfare and superannuation payments.)

“National’s 2010 tax cuts for high income earners were sold to us on the basis of eliminating exactly this kind of tax avoidance behaviour, by bringing the top income tax rate down closer to the company and trust tax rate — two of the key vehicles used to avoid paying tax,” said Green Party Co-leader James Shaw.

“National has had eight years to address tax avoidance at the top and has failed.

“Cutting the top tax rate for wealthy tax payers has not stopped tax avoidance, it’s just shifted the problem.”

“The Green Party in Government would work from day one to make sure that high income earners pay their fair share of taxes.

“The vast majority of Kiwis contribute fairly to the public services we all use; it’s an injustice to them that some high income earners are getting a free ride.

“Funding for investigating and auditing tax avoidance has been cut by the National Government. We’d restore this funding so IRD can catch tax cheats.

“National’s record on policing tax avoidance is poor. Bill English refused to close the capital gains tax loophole that encourages property speculation and his Government is having to be dragged kicking and screaming to address massive tax avoidance by multinational companies,” said Mr Shaw.

Link to IRD data and graph:
http://www.ird.govt.nz/aboutir/external-stats/revenue-refunds/income-dis...

Action

Virtual Events

We have activists across Aotearoa / New Zealand who are working hard to build a brighter future for our kids and grandkids. This page lists upcomin...
Take Action

Action

It's time to pay our essential workers a dignified wage

Our essential workers are the heroes getting us through the COVID-19 crisis, yet for too long they’ve been...
Take Action

Action

Join our call to stop funding fossil fuels!

We need to remove all public money managed by the Government from climate-changing fossil fuel industries.
Take Action

Action

Support our Climate Action Plan for bigger bolder climate action

We agree with all five of the School Strike for Climate's demands. Read more and sign the petition.
Take Action

Action

Show your support to end housing inequality

Our essential workers are the heroes getting us through the COVID-19 crisis, yet for too long they’ve been undervalued and many barely....
Take Action

Latest Finance Announcements

Policy

Economic Policy

A Green economy is about better quality of life for people and the planet. Economic success is intertwined with environmental and human wellbeing. ...
See More

Policy

Trade and Foreign Investment Policy

We support fair trade that’s good for economic prosperity, people, and the planet. Trade agreements must respect democracy and state sovereignty T...
See More

Story

Green Budget win backs public sector leadership on climate change

The Greens in Government have today won a significant investment to help move the public sector estate onto clean, renewable energy, Green Party Co...
Read More

Story

Budget 2019 Speech - James Shaw

E te Māngai o te Whare, tēnā koe. Ki a koutou ōku hoa Pāremata, huri noa i te Whare, ngā mihi o te tau hou ki a koutou katoa. 1.         The Wellbe...
Read More

Story

Green Party welcomes first Wellbeing Budget

“The Green Party is proud to welcome New Zealand’s first Wellbeing Budget to deliver change for New Zealanders,” Green Party Co-leader James Shaw s...
Read More

Story

Wellbeing: We need to change how we see our economy

“The Wellbeing Budget is a first step in changing the way we look at the economy and our place in it”, said Green Party Co-leader Marama Davidson. ...
Read More