We need to have a debate about tax

Kiwis need to talk seriously about our tax regime says Peter Malcolm of the Income Equality—Closing the Gap organisation in response to the Green Party tax policy and Labour dithering around the edges of possible tax changes. Malcolm said there are a great many voices from across the income and wealth spectrum, calling for the government to collect more taxes to fund our increasingly creaky health system as well as education, social welfare and infrastructure.

But we should not assume that the call for more tax is simply the poor wanting to punish the wealthy. “The truth is that we all, those in middle income through to the wealthy should pay more tax”, said Malcolm. “International surveys suggest that those countries that are most happy are those where more tax is paid by everyone. This also requires a broader based tax regime so tax is paid not just on income but on capital profits as well ie all income regardless of source”.

Malcolm went on to say that the Scandinavian nations have the highest levels of measured happiness but also pay more tax than countries like New Zealand. Scandinavians appreciate government services that meet the needs of their people and they know these must be paid for.

This debate needs to take place across the political spectrum. Whether we vote to the left or right we should face up to the fact that we must all pay more tax if we are to have world class public services. We are encouraged by some wealthy Kiwis who support this concept. And of course even in the USA some mega rich and highly successful business tycoons like Warren Buffet and Bill Gates support principles of equality.

“All political parties should be developing their tax policies for the election campaign next year” said Malcolm. “Even it takes several years to move to higher taxes this debate should be above party politics”.

© Scoop Media