“The NZCTU welcomes a discussion on New Zealand’s tax system following the release of Te Pāti Māori’s tax plan, as well as the plan released in June by the Green Party”, says Sandra Grey, President of the NZ Council of Trade Unions Te Kauae Kaimahi.
“New Zealand’s tax system is unfair. Working people pay tax on every dollar they earn from their wages, while the wealthiest earn tax free returns from capital income. As research from Inland Revenue shows, the wealthiest families in Aotearoa pay only half the effective tax rate that ordinary working Kiwis do”, says Grey.
“This has contributed to the rising levels of inequality in our society,” adds Grey. “High inequality is socially and economically poisonous. We need to rebalance things so that the wealthy pay their fair share.”
Grey says that we also know that the Government is not currently collecting the level of revenue it needs to sustain and improve the public services that working Kiwis rely on.
“Across our hospitals, our schools, our water systems, and our transport ways, we have major funding shortfalls,” says Grey. “A reform of the tax system is needed to address these twin issues of inequality and underfunded public services.”
“While the policy from Te Pāti Māori released today isn’t costed, there are many aspects of the policy that we agree with,” says Aubrey Wilkinson, Vice President Māori, NZCTU.
“We’re generally supportive of taxing wealth, increasing the company tax rate, and reform of personal income tax brackets to make them more progressive – including a tax-free threshold at the bottom.
“The NZCTU is ready to engage with political parties who are serious about tackling the scourge of inequality and ensuring the state has the capacity to deliver the public services, infrastructure, and welfare system that Aotearoa needs”, says Wilkinson.
“A discussion on a bold tax plan is welcome given the disproportionate effect of wealth inequality on Māori,” adds Wilkinson.
