The New Zealand Council of Trade Unions Te Kauae Kaimahi has welcomed today's Tax Policy Statement from Tax Justice Aotearoa, calling it a timely and important contribution to what must be an honest national conversation about taxation heading into an election year.
The CTU says Aotearoa's tax system is fundamentally out of balance. Every dollar of labour income is taxed, and almost every purchase of a good or service is taxed - yet gains from capital remain largely untaxed.
"This imbalance is both inequitable and economically counterproductive," says CTU President Sandra Grey. "The paper makes a compelling case that the current system is not fit for purpose.
"We do need to find sustainable ways to pay for the essential public goods and services that we all rely upon. Our public health, education, and welfare systems all need to be financed through a taxation system that places the costs of that financing fairly. This paper argues convincingly that we haven't got that balance right.
"We also want to make sure that we have the most efficient taxation system possible, and the paper argues for essential investment in Inland Revenue. Political parties that are promising to cut taxes and tax administration need to comprehensively show how they would be paying for this change," says Grey.
The CTU's call for a capital gains tax
As part of its Aotearoa Reimagined policy platform - developed over the past year through engagement with workers, community leaders, and policy experts - the CTU has called for a comprehensive capital gains tax on all assets except the family home.
"Rebalancing the tax system is essential to funding the transformative change New Zealand needs, and to ensuring that the wealthy pay their fair share," says Grey.
"A well-designed capital gains tax would level the playing field between wage earners and those who derive their income primarily from investment and speculation."
