Abstract
The way that we collect government revenue in Aotearoa New Zealand helps perpetuate inequalities and provides insufficient money for public services to deal effectively with a daunting range of economic, social, health and climate change crises. Our tax system does not regard wealth as a source of revenue: we do not tax assets, inheritances, or gifts (with some exceptions). Our system does not demonstrate compliance with Te Tiriti o Waitangi.
This briefing outlines principles for redesign of our tax system and suggests changes. These proposals for change would need political commitment for them to become reality:
A higher income tax rate for those with high incomes: a 50% tax rate on income over $150,000, instead of the current top rate of 39% over $180,000.
A 2% annual tax on net wealth over $2m (net after debts subtracted) eg, an annual $20,000 on $3m net wealth, along with a wealth transfer tax
More openness in the tax system - disclosure and public access to tax-related information.