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

 

Response to Interim Report from the Tax Working Group

Response to Interim Report from the Tax Working Group

The Equality Network* welcomes the Tax Working Group’s interim report.

Reducing income and wealth inequality in New Zealand is critical. The research is unequivocal - addressing inequality is fundamental to a healthy society. High inequality contributes to issues such as child poverty, reduces societal cohesiveness and harms the economy.

Tax plays a critical role in reducing inequality, and the Equality Network is pleased the report acknowledges this. However, while there are worthy measures in the report, more needs to be done to create a coherent system to reduce inequality.

“We would like to see the TWG set out more clearly how the changes proposed to the tax system will help reduce inequality. There is not enough in the draft report about this.

“A key part of reducing inequality is the adequate provision of Government services like health and education. So, a tax system must provide sufficient funds to properly fund Government services at a significantly higher level than the 30% of GDP that the TWG is working from.

“Tax tends to invite a lot of debate. But at the end of the day, it’s about is ensuring we have a fair system in which everyone benefits. The reality is this just isn’t happening, wealth distribution in New Zealand is hugely distorted, with the system benefiting some over others. But it’s not an intractable problem with no answer” says Peter Malcolm, spokesperson for the Equality Network.

The Equality Network is pleased that the TWG is considering reducing income tax rates for lower and middle income earners. This will help reduce income inequality. But further measures should include a steeper progressive tax scale, with much more tax on very high incomes.

The Inequality Network would also like to see all income, regardless of source, taxed. This would be the ultimate step in a truly fair tax system

“We’re pleased the interim report is considering a more comprehensive tax on capital income. However, it’s not clear if this includes all the largely untaxed capital gains that would continue to benefit a relatively small group of the wealthiest in our country” says Peter.

The Equality Network would like to see a deeper consideration of the links between the tax system and welfare, including secondary employment taxes and the abatement of benefits once a certain income level is reached.

“While there is a role for abatement and secondary employment taxes we need to make sure we have the levels right. The current system penalises those who are trying to earn extra income while also needing welfare support” says Peter.

*The Equality Network is a non-partisan network of some 40 organisations dedicated to reducing poverty and inequality, so as to improve the well-being of all New Zealanders.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joseph Cederwall: Building a Community Newsroom

The “Scoop 3.0” Transition Plan
There is good reason to believe that a new path and a better future is possible for Scoop in 2019 as a pioneering independent Media company. A combination of new technology, ideas, institutions and business models and a renewed energy and commitment by the Scoop team, means Scoop aims to be at the forefront of the development of this renaissance that we term ‘News 3.0’.

By opening up Scoop’s structure to community ownership and exploring decentralised technology through the blockchain we can ensure the public has a stake in this enterprise and a say in its development. More>>

 

Gordon Campbell: On Jami-Lee Ross (And The New Hobbit Law)

Clearly, Jami-Lee Ross is not waging a normal form of political warfare, with agreed rules of combat and rational cost/benefit calculations.

This is politics-as-terrorism where everything is being sacrificed by the man in the bomb vest in order to remove Simon Bridges as the leader of the National Party. More>>

Text Messages Released: National On $100,000 Donation(s)
The Botany Electorate of the National Party received 8 donations, and Mr Ross declared 8 donations to us. More>>

ALSO:

Film Industry Working Group:

Three Killed: DOC Supporting Family, Colleagues After Helicopter Crash

The Department of Conservation (DOC) is rallying around family and colleagues of the staff who died in a helicopter crash this morning in Wanaka... The helicopter, with two DOC staff on board, was on its way to undertake tahr control in the Haast area when it crashed. More>>

ALSO:

Political Donations: Greens Call For Tighter Anonymity Rules And Public Funding

“It is clear that those vested interests have a tangible influence on the decision making of political parties. This is a threat to democracy and should change.” More>>

ALSO:

Education Amendment Bill Passes: Urgency Sought For Partnership School Treaty Claim

The claim takes issue with the acts and omissions of the Crown in respect of the closure of Partnership Schools | Kura Hourua. More>>

ALSO:

Salvation Army Paper: Call For Public Housing Investment

To meet these future demands the report suggests the government needs to look beyond the private rental market and begin to invest heavily into home-ownership programmes and more public and social housing. More>>

ALSO:

Cull: Himalayan Tahr Control Operation Proceeding

“The target of controlling 10,000 Himalayan tahr over the next eight months remains. The revised plan provides for a staged control operation with increased reporting to the Tahr Liaison Group...” More>>

ALSO:

Health: Petitions To Fund Breast Cancer Drugs

Women marching to Parliament today, to present two petitions calling for Government funding of vital medicines, have 100% support from a coalition representing than 30 breast cancer organisations. More>>

ALSO:

Animal Welfare Advisory Committee: Report On Rodeo Practices Released

The independent committee that advises the Minister responsible for Animal Welfare, has today released a report on animal welfare in rodeos, together with advice to the Minister making recommendations to improve the welfare of the animals in rodeos. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels