Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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


Time to give flat tax concept a decent burial

Time to give flat tax concept a decent burial

Alliance Party media release FOR IMMEDIATE RELEASE Sunday 6 December 2009

Alliance Party co leader Kay Murray says it is time for National and ACT to get over their fixation with flat tax and return to reality.

"Flat tax is an outdated idea of the 1980's. All flat tax does is give the already wealthy a license to print money while destroying the living standards of low to middle income earners, the majority of the population. The flat tax theory is about as credible as the flat earth theory."

Ms Murray says the introduction of flat tax would spell the demise of the welfare state.

"Something all New Zealanders should resist, especially since we have been credited with being the first country in the world enlightened enough to introduce a welfare state that includes public health, education and social security for all citizens."

She says there is no real possibility of the introduction of flat tax, as it would create an enormous political backlash, but its ongoing promotion was to provide political space to a Government who wanted to give tax breaks to the already wealthy at the expense of the majority of New Zealanders.

"There is no good economic reason why the top tax rate needs to be lowered to 30% as Bill English suggests and even less reason why it should be lowered to 20% as the 2025 Task Force recommends."

Ms Murray says in either case there will be a large deficit in government income that will need to be made up by some other form of tax or cuts to essential social services.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"We are already borrowing heavily to balance the books. Any further tax cuts would be financially and socially irresponsible."

Ms Murray says there is a much more compelling reason to raise the top tax rate through a progressive tax system and broaden the tax base through a capital gains tax on investment property and a financial transactions tax.

"That way more of the burden falls on New Zealanders who can actually afford to pay the extra, rather than increase regressive taxes like GST which affects everyone, whether they can afford to pay or not."

She says it is urgent to lower tax on those struggling on low wages as there was real hardship in New Zealand and that had to be the priority for tax reform, not more disposable income for the already wealthy.


The Alliance Party has a full costed alternative budget and progressive tax scale, see

© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Perils Of Joining AUKUS Pillar Two

The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...


Government: Backs Police To Crackdown On Gangs
The coalition Government is restoring law and order by providing police new tools to crack down on criminal gangs, says Justice Minister Paul Goldsmith and Police Minister Mark Mitchell. “Over the last five years gangs have recruited more than 3000 members, a 51 per cent increase... More

Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More

Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.