The Better Taxes for a Better Future campaign welcomes the recognition in the Green Party’s Fiscal Strategy of the importance of government capability in building an economy and society that delivers what our communities need. Its fiscal strategy is a significant contribution towards moving thinking on from the fiscal conservatism and market fundamentalism that has dominated the conversation but has not delivered.
“For the last 40 – 50 years governments in New Zealand have underinvested in public infrastructure and services which would support the kind of economic and social development that would enable our communities to thrive. We need to promote debate about different ways of doing things, about ‘economics as if people mattered’,” says Glenn Barclay, campaign spokesperson.
“The Green’s discussion document is a serious starting point for that conversation. We strongly support the recognition of the wider value of public expenditure to the economy. We need to be able to have a mature debate about growing tax revenue and the use of borrowing as sound economic strategies that are open to us.”
“We have relatively low levels of public debt compared with other OECD countries – in 2024 the IMF ranked us as having the 6th lowest net debt as a proportion of GDP among advanced economies – and room to make wise decisions about borrowing more to invest in public infrastructure that will help to build a productive economy into the future. Government investment now would also help us get out of the current recession and relieve the pressure people are experiencing,” says Glenn Barclay.
“But we cannot rely solely on debt to build government capability. We need to grow our tax revenue to provide the vital public services upon which people and the economy rely, and to alleviate poverty and inequality. The revenue must be raised in a way that ensures those who can afford to contribute more to the common good do, while addressing the impact of tax on the least well off.”
“As the Green’s discussion document points out, underinvestment now in infrastructure, in our people and in responding to climate change, risks much more significant costs to address these challenges in the future. Underinvestment and deteriorating services may well create a greater risk than a moderate increase in the government’s debt level,” says Glenn Barclay.
“Successive governments have made choices about fiscal management that have been driven by rigid thinking. That thinking has failed to support a productive economy that meets the needs of our people now and into the future. It is time that we made better choices, for a better future for New Zealanders.”
The Better Taxes for a Better Future Campaign is a coalition of over 20 organisations led by Tax Justice Aotearoa.
We believe that tax reform is the only solution to the current challenges facing Aotearoa NZ. We need the tax system to:
be transparent
raise more revenue to enable us address the challenges we face
make sure 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
make greater use of fair taxes to promote good health and environmental health
address the tax impact on the least well off in our society.
