The Reds have announced an $8 billion tax grab:
The Green Party have unveiled a sweeping new welfare policy that would guarantee a weekly income of at least $325, paid for by a wealth tax on millionaires and two new income tax brackets on high-earners. . .
The $325 after-tax payment would be paid to every adult not in fulltime paid work – including students, part-time workers, and the unemployed. The student allowance and Jobseekers benefit would be replaced. . .
It would be topped up by $110 for sole parents, and the current best start payment would be expanded from $60 per child to $100 per child, and made universal for children up to three instead of two.
This guaranteed minimum income plan would cost $7.9b a year – roughly half what is spent on NZ Super, but almost twice what is spent on current working age benefits.
Paying for all this would be a wealth tax of one per cent on net wealth of over $1 million and two per cent for assets over $2 million. The party expects this would hit only the wealthiest 6 per cent of Kiwis.
This would take the form of an annual payment and would only apply to those who owned those assets outright – not someone who still had a mortgage on their million-dollar home, for example.
That looks like everyone could avoid the tax by never paying off their mortgage, but the party wouldn’t be that stupid, would it?
Any party that thinks up this sort of economic vandalism could be.
The Taxpayers’ Union is slamming the Green Party’s proposed wealth tax as bureaucratic economic vandalism that would hammer job creators.
Taxpayers’ Union spokesperson Jordan Williams says, “The proposed wealth tax would mean the return of the dreaded compulsory asset valuations that made a capital gains tax so unpopular. A bureaucratic valuation scheme would incentivise people to hide their wealth, or shift it offshore. It would be a dream for tax accountants but hell for small business owners.”
“The policy also appears not to differentiate between asset types. It would tax entrepreneurs creating jobs the same as someone sitting on an art collection. Ultimately it would cost jobs at the very time New Zealanders need entrepreneurs to create them.”
“Wealthy iwi groups sitting on often unproductive land would also be smashed under this scheme. It’s bumper sticker type policy which is poorly thought through.”
“Any party that says you should raise taxes in the middle of a recession is divorced from reality. It is scary that all the work James Shaw has done to try and make the Greens more economically credible appears to be for nothing.”
Commenting specifically on the Green Party’s income support policy, Mr Williams says, “Under the Greens’ policy, a family of five with both parents on the dole would receive $1180 a week in taxpayer funds, assuming one of the kids is younger than three. That goes beyond generosity: it is using taxpayer funds to encourage long-term unemployment. Combined with the policies to tax job creators, this package would take a sledgehammer to New Zealand’s productivity.”
There’s no good time to increase taxes and a recession is an even worse time.
Recovery from the economic carnage wrought by the Covid-19 response requires investment, expansion and increased employment opportunities.
This policy will be a handbrake on all of those and an accelerator for benefit dependency which is a pathway to increased poverty.
This policy is typical of a party that’s more red than green and doesn’t understand that a greener country has to be well and truly in the black and you don’t there by taxing more.
New Zealanders gained a glimpse today of what a Labour Greens government would look like, and it involves a lot more taxes, National’s Finance spokesperson, Paul Goldsmith, said today. . .
At a time when we need our successful small business people to invest and create more jobs, the Greens want to tax them more.
Rather than celebrating Kiwis doing well, the Greens seem to want to punish them.
The Greens never have the influence to get their way entirely, but they would push a Labour Greens coalition in the direction of higher taxes.
Labour have so far refused to rule out taxing people more if they win the election.
The very real fear many New Zealanders have is that this current government, which has $20 billion available for election spending, will spend whatever it takes to try to keep its poll numbers up until the 19 September election.
Then on the 20th, if they win, the smiles will drop and New Zealanders will be presented with the bill – higher taxes.
National has committed to no new taxes for Kiwis in our first term.
While the economy is going down, the Greens want to tax us more, and Labour haven’t ruled out doing the same.
That’s another very good reason to vote for a National/Act government that will focus on policies which foster the economic growth necessary to provide a pathway for progress.