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Support Tax Fairness Reform

Written By: - Date published: 12:15 pm, April 9th, 2019 - 16 comments
Categories: capital gains, education, equality, health, housing, tax, welfare - Tags:

The Tax Justice Network has started a campaign to gain support for taxing capital as income to support and improve our public services. If you would like to support the campaign, you can sign the petition here or donate here. All funds donated will go to the campaign advertising.

Tax Justice Aotearoa New Zealand comprises a group of individuals and supportive organisations who support a fair tax system in New Zealand and oppose tax evasion around the world. It is an adjunct of the international Tax Justice Network which has already made major gains in this direction, particularly in improving reporting systems and opposing tax havens.

The New Zealand Fabian Society has a number of presentations about these issues on its website under Presentations and Publications. We are happy to offer our donations facility for those who may wish to contribute to the campaign.

16 comments on “Support Tax Fairness Reform”

  1. I support CGT for only selling and buying of succession properties and business.

  2. Tuppence Shrewsbury 2

    tax justice would be making it fairer for all through rebalancing, not just socking people who earn more than you with more tax.

    $70k isn’t much in the main centres

    • Andre 2.1

      You’re right, $70k is a ridiculously low income to get into the top marginal tax rate. It would be much fairer to add say another 6% to the marginal tax rate for every doubling of income. 39% over $140k, 45% over $280k, 51% over $560k etc. Plus a CGT.

      That would be an effective rebalance allowing some of the burden to be shifted off those struggling to get by with the extraordinarily high (relative to other wealthy nations) marginal tax rates we levy on those with low incomes.

      • KJT 2.1.1

        The same income tax steps as Australia would work.

        https://www.ato.gov.au/Rates/Individual-income-tax-rates/

        Their tax free first step to around $18000, and higher rates from 90k. With the top rate from 180k.
        Note State taxes and Medicare are on top of federal taxes.

        Explodes the fantasy that people go to Australia for lower taxes.

        • Ad 2.1.1.1

          It would be a much stronger and more enduring approach to align our tax levels with those of Australia. We are in all but name an Australian state already.

      • Tuppence Shrewsbury 2.1.2

        So leave the top tax rate where it is and just charge higher earners more? Seems needlessly aggressive on a post about tax fairness

        What about having company, trust, top tax and cgt all at 30% and kicking in at $120k of income

        25% $50k to $120k

        20% from $20k to $50k

        Tax free below $20k

      • greywarshark 2.1.3

        Having income tax 50% or over is a perfect case for complaints of unfairness.
        If we had CGT and 49% top tax rate, we would get a good take I think.
        Otherwise Andre’s ideas for marginal are pretty good.

        Everyone who is an earner can be starting at 2% which would go to $20,000
        5% 20-30K, 7% 30-40K, 15% 40-70K, 20% 70-100K, 30% 100-140K.
        Not costed just seems a reasonable progression.

  3. Dennis Frank 3

    Wrong-headed thinking, seems to me. I’d rather see a communal effort to crowd-source the design of a tax system, using the wisdom of the crowd. Campaigning to lobby politicians to do what they’ve been consistently refusing to do our entire lifetimes is likely to be a waste of time.

    • KJT 3.1

      Thanks for the agreement.

      However that will resemble Democracy.

      Crowd funding will result in more progressive taxation on wealth, whether through CGT, FTT, wealth taxes, more progressive income tax, or all of the above.

      Labour, NZF and National’s funders will never allow it. And, more to the point, they will spend millions, to skew the discussion.

      • Dennis Frank 3.1.1

        Too defeatist. It’s worth a try. However I don’t mind waiting to see what the democratic process produces. We may get a pleasant surprise.

  4. greywarshark 4

    My line on tax reform is getting the huge clawback on beneficiaries who earn over the limit. It appears to me that the government wants beneficiaries to be poor and resents when they try and break out so they can live as nwar ordinary lives as possible on a basic level.

    So the slogan Let Beneficiaries Smile is the one for the poster to advance this case for encouraging individual initiative, building confidence, and aiming higher. No
    claw back, flexible earnings, checked every quarter. No loss of grants, accommodation benefits, no increase in pay-back of loans because someone has been able to earn more for a period. Offer training in something the person can complete and on till they can manage mostly on their own. Then wipe the loan repayments.

    That is the most important tax and net income change that can be made as it affects young people, and particularly young people with children. And further no young woman forced to identify the father, and fathers not be made to support their children if the mothers don’t want them, or they don’t want to. The mothers are to get training plus allowances and then part-time work plus allowances. And no more children, so contraception paid for, so no tax there.

    And GST reduced to 10%, up to 5% going back to where the expenditure occurred.

  5. mosa 5

    All signed up and contribution made.
    Fair taxation for ALL New Zealanders.
    It’s time !!!!!!!

  6. Jum 6

    The only way we can get financial equity for New Zealanders is to target the asset base of those using it to make profit with no financial penalty. Also, the more assets = the more wealth, influence which enables more wealth.

    The cycle of wealth feeds off an asset base; the cycle of poverty is engineered through profit takers, based on low wages, high property prices and no handup into ownership through e.g. government-backed housing loans.

    Irresponsible market Greed caused this current imbalance and must be part of rebalancing it through taking financial responsibility by paying fair taxes.

    CGT helps to balance the inequity if the income is used to enable others to gain assets.
    Without an asset, and we’re talking property, there is no leverage for the individual. I don’t know why people are touting a renting future for our new generation unless it is to make them forever dependent on those with the assets.

  7. Observer Tokoroa 7

    YES JUM

    “The only way we can get financial equity for New Zealanders is to target the asset base of those using it to make profit with no financial penalty. Also, the more assets = the more wealth, influence which enables more wealth.

    The cycle of wealth feeds off an asset base; the cycle of poverty is engineered through profit takers, based on low wages, high property prices and no handup into ownership through e.g. government-backed housing loans. ”

    In my opinion you are profoundly correct.

    It is grossly unfair to smother tiny asset holders – namely NZ Workers – to more anxiety and impoverishment. Sans Housing, With Cruel Excessive Rents.

  8. millsy 8

    Those that cry poverty need to remember that tax for high income earners has been slashed over the past 30 years by 50%.

    To pay for these cuts, schools and hospitals have been closed, benefits cut, tertiary education effectively privatised, power bills hiked, state houses sold, etc.

    Too bad that TWG didnt deliver its findings on the site of the old Napier Hospital, which was closed in the 1990’s to pay for tax cuts.

  9. A 9

    Ugh capital gains

    🙁

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