Last month the Greens released their tax policy, pushing for a wealth tax to end poverty. Today, Te Pāti Māori followed suit, releasing an even more progressive proposal:
Te Pāti Māori released its tax policy on Thursday, going into October’s election. It joined the Green Party’s call for a tax-free income threshold and a wealth tax – but Te Pāti Māori went a step further.There's some magical thinking in Te Pāti Māori's proposal, in the line about getting $7 billion in tax by funding the SFO to crack down on fraud. Its not that there's nothing there to be gained, or that massively increased SFO or IRD funding won't help cut criminal evasion, but it just sounds awfully like the infinite money the right thinks it can get from "reducing waste".Te Pāti Māori pushed for a range of new taxes, targeting landowners, the rich and the profits of foreign corporates. And, as Stuff revealed earlier, it included an income tax-free bracket up to $30,000, offset by higher taxes on higher incomes.
Waititi positioned the policy as a Robinhood-style reimagining of the tax system.
This is clearly going to mean coalition pain for Labour if they're in a position to form a government post-election. They're going to have to accept some form of wealth taxation and an increase in progressivity, or else try and form a coalition with National or ACT. Though as both of those parties seem closer to Labour's preferred position ATM, maybe they'll do that rather than work with their allies.
