27 September 2024 – A petition has been launched today calling on the leaders of all our political parties to consider a capital gains tax in Aotearoa.
Tax Justice Aotearoa’s petition seeks to level the playing field of the current tax system and highlights the urgent need for more revenue to fund essential services and infrastructure.
“Our tax system is way out of balance and a capital gains tax (CGT) is a good first step that would help level the playing field between wage earners and those who mainly earn their money through investments,” says Tax Justice Aotearoa chair Glenn Barclay.
“There has been growing support for a capital gains tax from a range of individuals and organisations in the media in recent weeks and it is timely to give the public of New Zealand the opportunity to express their support too.
“The additional revenue raised could be used to fund vital services such as education, healthcare and infrastructure and to help address climate change, leading to a better quality of life for all New Zealanders.”
ActionStation is hosting the petition and Director Kassie Hartendorp agrees it’s time to make capitalgains tax a reality.
“Just over 72% of the members we talked to support a capital gains tax – including 18% of those people who would benefit from that tax and yet still thought it would have a positive impact.
“Our country is ready to join many others around the world, and just make it happen.”
It’s a kaupapa shared across a range of advocacy groups including Child Poverty Action Group (CPAG).
“We welcome a discussion on capital gains tax, especially this week when the Minister for Child Poverty Reduction rejected a $3 billion proposal from officials that would have kept us on track to achieving the goal of halving child poverty by 2028,” says CPAG Executive Officer Sarita Divis.
“This is at the same time the government is giving tax cuts of $2.9 billion for landlords, allowing them to deduct interest as an expense and receive tax free capital gains on sales of their houses.
“Taxes allow us to do the things we want to do as a nation, like ending child poverty,” Sarita Divis says.
New Zealand Nurses Organisation (NZNO) also backed the petition.
“Fairer taxes would support appropriate levels of health funding and better patient outcomes by enabling safe levels of health care professional to patient ratios,” says Anne Daniels, President of the NZ Nurses Organisation.
Another organisation supporting the petition was the New Zealand Council of Trade Unions.
“The NZCTU Te Kauae Kaimahi strongly believes that our current tax system isn’t fit for purpose and isn’t delivering the outcomes New Zealanders deserve,” says Craig Renney, NZCTU Economist and Director of Policy.
“Workers pay tax on every dollar earned, while those who make huge capital gains pay nothing at all.
“Levelling the playing field through a well-designed CGT would benefit workers, the economy, and the housing market while delivering revenue to invest in underfunded public services.
“There is a reason why so many other countries have a CGT and continue to do better than Aotearoa,” Craig Renney says.
It was a message shared by the Public Service Association (PSA).
“The Public Service Association Te Pūkenga Here Tikanga Mahi believes we need a fairer tax system that helps properly fund public and community services, so that they are there when we need them,” says Kerry Davies, PSA’s national secretary.
“A capital gains tax should be part of a fair tax system that generates the revenue the Government needs to do its job of looking after all New Zealanders.”
Tax Justice Aotearoa calls on all New Zealanders to sign and share the petition to show their support for a fairer and more equitable tax system:
https://our.actionstation.org.nz/petitions/it-s-time-for-a-capital-gains-tax
