Tuesday, July 26, 2022

We need a windfall tax

New Zealand companies are using their oligopolistic market power to gouge mega profits, driving up inflation. Overseas, such actions have resulted in windfall taxes, which have been used both to drive down inflation, and ameliorate its impacts (while driving down emissions). With New Zealand petrol companies pocketing record margins and banks shipping record amounts of cash offshore to their foreign owners, it seems like we could do the same here. But is Labour even thinking about it? Of course not:

The Treasury said it had not been asked to conduct any work on a windfall tax for energy companies, and Finance Minister Grant Robertson confirmed no work was under way.

“We are closely monitoring margins in the fuel market to make sure savings are being passed on to motorists,” Robertson said.

So much for standing up for ordinary kiwis.