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E tū very disappointed by CGT announcement

E tū, the biggest private sector union in New Zealand, is very disappointed that the Government will not adopt any of the Tax Working Group’s recommendations on introducing a capital gains tax (CGT).

Annie Newman, E tū’s National Director of Campaigns, says that this development is a step backwards in the much-needed tax reform debate.

“Workers pay tax on every dollar they earn, it’s ridiculous that some of the very richest people don’t have to contribute,” Annie says.

“Having everyone pay their fair share is a fundamental principle of a well-functioning tax system. We all need our schools, hospitals, roads, and many other things that taxes pay for.”

Annie says that the commitment from the Prime Minister that there will not be a CGT while she is leader is particularly disappointing.

“There’s definitely an argument that the Labour Party has not yet won the public debate on this element of tax law reform. However, that’s a good reason to strengthen the public discussion – not to rule out important tools for tackling inequality.

Annie says that this decision means that the Government will need to be even more committed to other policies for tackling inequality in New Zealand.

“There is still some hope for continuing to fix poverty in New Zealand. Policies like Fair Pay Agreements, ethical procurement, better healthcare, free education, and affordable housing all have a big part to play.

“Working people may have lost this one, but we’ll continue our campaigns for real change – that’s what New Zealanders deserve.”


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