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

 

Reclaiming A Fair Go For Everyone, Not Just The Well-off

There is now an urgent need to redistribute wealth to benefit more New Zealanders says Peter Malcolm spokes person for Income Equality Aotearoa NZ Inc “Closing the Gap”. This needs to happen to resolve the enduring inequalities in this country which have now been exacerbated by Covid 19. One important way is to make our personal income tax rates, much more steeply progressive.

The extent of our inequality has been highlighted by recent publicity over the number of salaries over $250,00 per annum within the Auckland City Council corridors of power (Ref: TV One News Campaign groups ‘rich list’ claims seven Auckland Council staff paid more than Prime Minister, May 3 2020) and suggestions that large well off and well established corporations should not have received the wage subsidy (Ref: Newshub Coronavirus; Government’s COVID-19 wage subsidies, tax cuts are ‘wasteful’ – Sir Roger Douglas, 05/05/2020) .

It is clear that top income earners and businesses are better equipped to withstand economic and social disruption.

We must build a fairer society; the ‘winner takes all ‘ emphasis on large salaries for the top echelon while large numbers of workers struggle to make ends meet is not what fair-minded New Zealanders want.

“Many poorly paid essential workers have kept the country running over the past five weeks of COVID-19 lockdown. They include supermarket workers earning only between $16 and $20 an hour, roughly $32,000 to $45,000 a year. They pay 17.5 % income tax on that yet our top personal income tax rate is not even double that, at 33% tax on earning over $70,000 a year” says Malcolm

Our top tax is relatively low compared to other economies, for example its 45% in Australia for amounts over $A180,000. Some years ago ours used to be over 60% and in Britain it was over 90%.

Economists have pointed out that high incomes and creation of wealth have a substantial luck component. It is not plausible that people reach that level of income simply by working especially hard or saving much more than their neighbours (Ref:Taxes and Inequality, L Burman, Tax Law Review, Vol 66, 2013).

The New Zealand tax system is one of the few means we have to address extremes of high incomes, but it is considered weak at reducing inequalities. (Ref: New Zealand’s tax system: weak at reducing inequalities, CTU Monthly Economic Bulletin, No. 203 (September 2018).

Because it mostly affects high-income households, an increase in the highest tax rate typically leads to a reduction in inequality. Analysts in New Zealand have identified lifting the highest income tax rate and using the proceeds to lower one of the two lowest tax rates would achieve the greatest improvement to welfare and reduction in inequality. (Ref: Treasury paper by Creedy, and an article by John Creedy & Norman Gemmell & Nicolas Hérault & Penny Mok, 2020 ), and how raising tax for high-income earners would reduce inequality, and improve social welfare in New Zealand, “The Conversation”, 24 September 2019).

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Todd Muller Needs To Own The Privacy Leak Scandal


Whenever a political scandal breaks, party leaders have two basic options. They can confess to being in boots and all, and try to brazen it out : nothing to see here, move on. This tended to be the John Key approach. Very hard to pull that off in this case, given that it involved violating the privacy of sick New Zealanders for party political gain.
The other option is to claim innocence of this terrible, no good, highly regrettable “error of judgement” and apologise profusely for the sins of others, while absolving your own good self of any responsibility. This has been Todd Muller’s chosen path.... More>>
 

Govt: Statement From Rt Hon Winston Peters

Deputy Prime Minister and New Zealand First Leader Rt Hon Winston Peters has announced he is taking a short stint of medical leave this week. More>>


Isolation: Government And Air NZ Agree To Manage Incoming Bookings

Bookings for seats on Air New Zealand flights into New Zealand will be managed in the short term to ensure the Government is able to safely place New Zealanders arriving home into a managed isolation or quarantine facility, says Housing Minister Megan ... More>>

ALSO:

Government: New Investment Creates Over 2000 Jobs To Clean Up Waterways

A package of 23 projects across the country will clean up waterways and deliver over 2000 jobs Prime Minister Jacinda Ardern and Environment Minister David Parker announced today. The $162 million dollar package will see 22 water clean-up projects ... More>>

ALSO:

Government: David Clark Resigns As Health Minister

The Prime Minister Jacinda Ardern has accepted David Clark’s resignation as Health Minister. More>>

ALSO:

Election 2020: Green Party Unveils Income Policy

The Green Party is today unveiling its Poverty Action Plan, which includes a Guaranteed Minimum Income to ensure people have enough to live with dignity. The scheme resets income support payments to ensure everyone not in full-time paid work gets at least ... More>>

ALSO:


Conservation: New Protection For Dolphins

Extensive new protections are being put in place as part of an updated plan to look after New Zealand’s native Hector’s and Māui dolphins, announced Minister of Fisheries Stuart Nash and Minister of Conservation Eugenie Sage today. More>>

ALSO:

Auckland: Water Consent Referred To Board Of Inquiry

Environment Minister David Parker has today “called in” Auckland’s application to the Waikato Regional Council to take an extra 200 million litres of water a day from the lower reaches of the Waikato River for Auckland drinking water and other municipal uses... More>>

ALSO:




Covid-19 Patient Info Leak: Hamish Walker - A Personal Statement And An Apology

I have spoken to National Party Leader Todd Muller and informed him that I passed to members of the media, by email, information containing Covid-19 patient details that was given to me by a source. I did this to expose the Government’s shortcomings ... More>>

ALSO:

PM: Labour Will Extend Loan Scheme 'lifeline' For Small Business

Labour has announced its plans to extend the Small Business Loan Cashflow Scheme and spend $162 million on a waterway clean-up package. More>>

ALSO:


Biosecurity: Winston Peters On EU Travel: 'We're Not Going To Compromise Our Country's Health'

Foreign Minister Winston Peters says New Zealanders who head to Europe on holiday should pay for their two weeks' hotel quarantine when they return. More>>

Economy: Infrastructure Investment To Create Jobs, Kick-Start COVID Rebuild

A new package of infrastructure investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand. Finance Minister Grant Robertson and Infrastructure Minister ... More>>

ALSO:

Covid-19: Isolation System To Be Beefed Up After Stress

A range of improvements are already underway to address issues identified in the rapid review of the Managed Isolation and Quarantine system released today, Housing Minister Megan Woods said. The review was commissioned just over a week ago to identify ... More>>

ALSO:

Election 2020: Parties Get Into Gear

ACT has today announced its list for the 2020 General Election. “The calibre and experience of our candidates will impress voters of every persuasion. We have candidates from all walks of life. People who have built their homes, families and businesses ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels