A spotlight on inequality and a bold challenge to improve Aotearoa’s tax system is a welcome call to action from The Salvation Army, says the Better taxes for a Better Future campaign.
The Salvation Army today released the first of its ‘Pressing Issues for Our People’ briefing series ahead of the 2023 General Election – with one of the first three issues being the unfairness of Aotearoa’s tax system.
“We agree that Aotearoa’s tax system is not fit for purpose – that purpose being to help alleviate the tax impact on the least well-off in our society,” says Better taxes for a Better Future spokesperson Glenn Barclay.
“The Salvation Army also rightly points out that a sufficient tax system would ensure the government has enough revenue so that everyone, especially the least well-off, can access affordable healthcare, education and housing.”
Glenn Barclay agreed that tax is a pressing issue this election year.
“There’s no time to kick the can down the road on tax – these issues need addressing now.”
The Salvation Army paper highlights the fact that wealth is very unequally shared in Aotearoa – the wealthiest 10% of the population control half of all wealth, while the poorest half of the population own less than 10 percent of all wealth.
The briefing paper also points out that a group of just over 300 of the wealthiest New Zealanders, who on average earn $8 million per year, paid less than 10 percent of their annual income in tax.
That is less than the rate paid by the lowest income earners (10.5%) – many of the people that The Salvation Army helps daily.
Alongside The Salvation Army and 20 other organisations, the Better taxes for a Better Future campaign is calling for a tax system that:
raises more revenue to enable us to address the social, economic and environmental challenges we face.
ensures people who have more to contribute make that contribution: that we gather more revenue from wealth, gains from wealth, all forms of income, and corporates.
makes greater use of fair taxes to promote good health and environmental health.
addresses the tax impact on the least well-off in our society.
is fully transparent, for example, by requiring the disclosure of information on ownership and beneficiaries of entities such as trusts.
