Evidence that shows Aotearoa has one of the worst tax systems in the world for reducing inequality needs urgent attention, the Green Party says.
According to new research from Oxfam International, the tax system in Aotearoa New Zealand designed by previous governments ranks 136th in the world for its effectiveness at reducing inequality.
“We need to redesign tax for a fair, equal Aotearoa with strong public services and income support so everyone has enough to live on,” says Julie Anne Genter, the Green Party’s finance spokesperson.
“The tax system has been designed by successive governments to create an unequal distribution of wealth and income, which is contributing to unacceptable levels of inequality.
“Minister Parker recently acknowledged that the system is not working - but the major political parties are bereft of ideas on how to fix it.
“On the one hand, the Government has ruled out action to tax wealth properly. On the other hand, National wants to make the problem even worse by cutting taxes for the wealthiest few, pushing more people into poverty.
“The Green Party has a plan to redesign the tax system that would build a just, equal, and greener economy.
“The most straightforward solution is to introduce a Capital Gains Tax or a Wealth Tax on individuals’ net wealth over $1 million – not including mortgages and other debt. This would only apply to the wealthiest six percent of New Zealanders.
“The revenue raised through a Wealth Tax could be used to lift every single family out of poverty by fixing Working for Families and the welfare system.
“We also need to explore options to better tax corporate profits.
“A transformed tax system in Aotearoa could provide vital support for public services like health and education, and to make sure those with the least have enough income to live with dignity.
“And with more Green MPs we can make it happen,” says Julie Anne Genter.