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

 

Press release on the TWG final report

Income Equality Aotearoa Inc—“Closing the Gap”-- is pleased with the Tax Working Group final report but it does not go far enough says Peter Malcolm, spokesperson for the group.

Over the last 40 years there has been a significant shift of financial resources from the poor to the wealthy in New Zealand primarily through changes to the tax system. The TWG recommendations go some way to redress this unfair situation. The report says the TWG found that the present tax system, and consequently Government revenue, relies on a relatively narrow range of taxes that it is not particularly progressive and hence does little to reduce inequality. Further our present capital gains tax system is inconsistent and regressive; it undermines our social capital and benefits only the wealthiest members of our society.

As a consequence they have recommended a reasonably comprehensive capital gains tax , with a few exceptions. We can understand the exclusion of the family home on political grounds but consider the argument irrational. The TWG is also suggesting the CGT will make it possible to increase the income for the poor either through reductions in tax or increases in benefit.

But In our view the TWG hasn’t gone far enough. Although much of the following was ruled out by the Terms of Reference there are hints from the TWG that the Government should look further at some of these issues. There are no recommendations for increases in income tax for the rich and no move on windfall or inheritances taxes which mostly benefit the wealthy.



Our last area of concern is that there is no recommendation for an increase in the total tax take. Over the last 40 years, in real terms, many Government services, particularly those in health and education have been underfunded. Education is no longer free and neither is health for adults and this has placed an increasing financial burden on the poor. Also the salaries for people working in these areas need significant lifting. Some of this is happening now but it is nowhere near enough. To solve these problems will require an increase in the total tax take. Overall, we are a low tax country. In the last 40 years the wealthy have done well. On grounds of fairness and equity, our wealthy can and should make a larger contribution to the wellbeing of our society. This would lead to a reduction in our high rate of wealth/income inequality,

This is a good start by Michael Cullen and his team. They make strong statements about the importance of good attitudes, fairness and equity leading to a better society for all. We hope that on this basis the Government will have the courage to adopt most if not all of the TWG’s recommendations and then move on from there toward building that better society.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Government Confirms Royal Commission of Inquiry:

Friday: National Remembrance Service

A National Remembrance Service for the victims of the Christchurch mosques terrorist attack, and all those affected by it, will be held at 10am on Friday 29 March, Prime Minister Jacinda Ardern announced. More>>

Ban On Military Style Semi-Automatics And Assault Rifles
Military style semi-automatics and assault rifles will be banned in New Zealand under stronger new gun laws... Related parts used to convert these guns into MSSAs are also being banned, along with all high-capacity magazines. “An amnesty will be put in place for weapons to be handed in, and Cabinet has directed officials to develop a buyback scheme...All semi-automatic weapons used during the terrorist attack on Friday 15 March will be banned." More>>

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK
For the Latest: Scoop Search - Christchurch
 

Gordon Campbell: On The School Climate Strike

Locally, the school strike has won a ton of support for bringing climate change to the fore. Yet the strikers don't want mere expressions of support. They want action. More>>

ALSO:

"Grabbed And Struck In The Face": Greens Co-Leader Attacked While Walking To Work

Green Party co-leader James Shaw was the victim of an unprovoked attack when he was walking to work in Wellington. More>>

ALSO:

████████ ████ ███: Latest OIA Statistics Released

The latest statistics cover 110 agencies that collectively completed 18,106 official information requests between July and December 2018, a 16.4% increase on the 15,551 requests for the previous six months. More>>

ALSO:

'Hit And Run' Inquiry: New Legal Action Over Secrecy

The lawyer representing the Afghan villagers in the inquiry into Operation Burnham has launched legal proceedings calling for a judicial review in the investigation. More>>

ALSO:

From Hydro Plan To...: Mokihinui River Land To Join Kahurangi National Park

A total of 64,400 hectares of conservation land in the Mokihinui River catchment on the West Coast north of Westport, including 15 km of riverbed, is being added to Kahurangi National Park. “Adding this area, roughly half the size of Auckland City, to Kahurangi is the largest addition of land to an existing national park in New Zealand’s history,” Eugenie Sage said. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels