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

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election