On the face of it a tax to discourage something that isn’t wanted is okay.
It works for tobacco.
Perhaps that’s why the Taxpayers’ Union uncharacteristically is welcoming a new tax.
. . . “For us the key questions are whether the Green Party’s policy will result in a simpler, more transparent tax system and whether it will reduce New Zealand’s overall tax burden. From what we’ve seen to date, it appears the proposals could do both.” . . .
The Green part doesn’t want to reduce the overall tax burden.
It wants to add a capital gains tax without any compensating reduction in other taxes and it’s planning other taxes including charges on water.
But the most important question about this policy is what does Labour think?
. . . For the policy to be implemented it would have to be accepted by the Labour Party as part of a coalition deal, and there would have to be a change of government.
Labour isn’t commenting – which usually means it doesn’t agree with what the Greens want.
The tax would impose higher costs on households than any compensatory reduction in other taxes and that would hit the poorest people hardest.
A carbon tax was one of the big factors which sank Julia Gillard’s Labor government in Australia, Labour here will take that into account before it decides whether or not to support the policy here.