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Facing up to the facts on a CGT should be welcomed

Any move towards including a capital gains tax within wider tax reform would be a step forward in achieving a fairer tax system says Tax Justice Aotearoa New Zealand.

“Capital gains taxation would be a good thing for all New Zealanders and ensure we join the rest of the world in treating all income sources in the same way. Any suggestion otherwise ignores the role that tax plays in underpinning both a fairer society and sustaining and growing public services,” say spokepersons Louise Delany and Paul Barber.

“Indexes like the 2018 Commitment to Reducing Inequality Index (www.inequalityindex.com) are ample illustration that New Zealand has been severely lagging behind in terms of moving to a more progressive tax system, a system where every person contributes according to their income. This consensus view of the Tax Working Group was evidence-backed common sense.

“Given the persistent gap between the richest and poorest, the lack of commitment to taxing wealth is a Trojan horse for the persistence of truly damaging levels of inequality.

“Our campaign in support of capital gains taxation as a sound element of much-needed tax reform has been a clear signal of the balance of voices needed in any serious debate about the direction of our future tax system.

“We have been overwhelmed by a clear hunger for tax justice from members of the public who form a ‘silent majority’ for change – with almost 2000 signing a petition within the last week with minimal publicity. Importantly more New Zealanders have also been hearing expert voices giving balance to the debate, such as economists Tim Hazledine and Ganesh Nana and accountancy specialist Alison Pavlovich.

“Attempting to diminish the scale of public support for making this change only serves to obscure and confuse the fact that the vast majority of New Zealanders stand to benefit from meaningful tax reform.

“We need agreement across the political spectrum on how all members of society can best contribute to common aims. Looking at other societies around the globe right now, we can see how inequalities threaten economic and social stability. What the members from the community-based organisations in our network want to hear – from all political parties – is how much they have the interests of fairness at heart. That’s what really matters at the end of the day – necessary change for ordinary New Zealanders.

“Achieving a fairer tax system will strengthen rather than weaken New Zealand. Fairness is the Kiwi way. It’s time for a capital gains tax”.

Petition: https://www.change.org/p/tell-jacinda-we-want-a-capital-gains-tax-it-s-time-to-join-the-modern-world

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