Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


OECD report suggests steeper income taxes for inequality

CTU Media Release

6 December 2011

OECD report suggests steeper income taxes on high incomes to reduce inequality

A new report from the OECD lists New Zealand as among the countries with the fastest rising inequality since the mid 1980s. “The report confirms what the CTU and many others in New Zealand have been saying: that inequality has grown to disturbing proportions in New Zealand,” says Bill Rosenberg, CTU Economist.

“The report says higher inequality has been driven by the rise in part time and low paid work, the falling level of welfare benefits, and cuts in top tax rates for high earners. It states that ‘There is nothing inevitable about high and growing inequalities’, pointing out that many successful countries have maintained lower levels of inequality,” says Rosenberg.

The OECD “underlines the need for governments to review their tax systems to ensure that wealthier individuals contribute their fair share of the tax burden. This can be achieved by raising marginal tax rates on the rich but also improving tax compliance, eliminating tax deductions, and reassessing the role of taxes in all forms of property and wealth”.

“Unfortunately the government is going in exactly the wrong direction on these matters,” Rosenberg says.

“While improving educational opportunities are important we also need to reverse tax cuts for the high paid and make more use of asset taxes such as a capital gains tax. We also need to strengthen our system of wage bargaining to give lower income employees a fairer deal.”

“The OECD says that we don’t just need new jobs, but ones that ‘enable people to avoid and escape poverty’. It says that ‘job quality has become a concern for a growing number of workers’. Once again, the government is going in the wrong direction in its employment law changes.”

The report shows that in New Zealand between the mid-80s and late 2000s, the richest ten percent of households increased their incomes after inflation at over twice the rate of the bottom ten percent – 2.5 percent per year compared with 1.1 percent. It also shows that the tax system reduces inequality much less in New Zealand than in other countries.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

PM's Post-Cabinet Press Conference: Waitangi And TPP

Prime Minister John Key on Tuesday said his office has received an invitation for him to visit the Lower Marae on Waitangi Day, but was waiting for a meeting of the Te Tii Marae Trustees. More>>

ALSO:

Flagged: 'Wrong Colour' Bridge Flag To Change

NZ First: Only 13 days after National trumpeted its legally questionable flag on Auckland Harbour Bridge, it is now coming down because it is the wrong colour... “Mr Key’s latest flag fiasco is another waste of taxpayers' money. Given it is coming down, down is exactly the location where it should remain. More>>

ALSO:

School's In: Children Head Back To School

“Across the whole of this year we expect 61,820 five year olds will begin their primary schooling for the first time,” says the Ministry of Education head of sector enablement and support Katrina Casey. More>>

ALSO:

Dog & Lemon: FBI Disagrees With NZ Government Over Police Chases

Multiple studies, quoted by the FBI, show that once suspects realise they're no longer being chased; they tend to slow down to normal driving speeds and therefore become far less of a risk. The FBI report also categorically rejected the argument that abandoning police chases meant ‘giving in’ to offenders. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news