Wednesday, February 13, 2019

A good question

The government is currently waiting to formally consider and release the advice from its Tax Working Group, which is widely expected to recommend a capital gains tax. But Green co-leader James Shaw has pre-empted it by asking whether they deserve to be re-elected if they don't implement one:
Green Party co-leader James Shaw has pushed out the boat on a capital gains tax (CGT), asking whether the Government "deserves" to be re-elected if it doesn't implement one.

[...]

"The Green Party have long been calling for this fundamental imbalance to be addressed. Every expert group in living memory has agreed with us. But no government has been bold enough to actually do it," Shaw said.

"If we want to reduce the wealth gap, to fix the housing crisis and to build a more productive, high-wage economy, we need to tax income from capital the same way as we tax income from work."

Shaw rubbished discussion of whether such a tax would be politically palatable, saying it was needed.

"The last question we should be asking ourselves is, 'can we be re-elected if we do this?' The only question we should be asking ourselves is, 'do we deserve to be re-elected if we don't?'"


And its a good question. This government was elected on a platform of reducing inequality. Fairly taxing capital income is fundamental to that, and (despite scaremongering from the rich) an increasing proportion of New Zealand society recognises that fact: it is simply not just that the poor are taxed and the rich are not. If Labour fails to fix this, then they simply will not deserve to be re-elected. It is that simple.