Election 2023: Greens co-leader James Shaw joins Newstalk ZB’s Mike Hosking to discuss party’s tax policy

By alexandreFinance

Election 2023: Greens co-leader James Shaw joins Newstalk ZB’s Mike Hosking to discuss party’s tax policy

The Greens co-leader James Shaw recently appeared on Newstalk ZB’s Mike Hosking show to discuss the party’s tax policy for the upcoming election in 2023. The discussion covered a range of topics, including the party’s proposals for a wealth tax and changes to the income tax system. Here are some of the key points from the conversation:

Current tax system

Shaw began by acknowledging that the current tax system is not working as well as it could be. He noted that there are many people in New Zealand who are struggling to make ends meet, while some wealthy individuals are not paying their fair share of taxes. Shaw argued that the tax system needs to be reformed to create a fairer society.

He also pointed out that the current tax system is overly complex, with many different tax rates and exemptions. This complexity makes it difficult for ordinary people to understand how much they are paying in taxes and why.

Shaw argued that the Greens’ tax proposals would simplify the system and make it more transparent.

Wealth tax

One of the key proposals in the Greens’ tax policy is a wealth tax. This would be a tax on assets held by individuals worth over $1 million. The tax rate would be 1% per year for assets worth up to $2 million, and 2% for assets worth over $2 million.

Shaw argued that this would be a fair way to raise revenue, as those who have benefited the most from New Zealand’s economic growth would be contributing the most. He also noted that the wealth tax would be similar to those already in place in many other countries, including Norway and Switzerland.

However, Hosking pushed back against this proposal, arguing that it would discourage investment and make New Zealand less attractive to wealthy individuals. He also noted that there are many people who have assets worth over $1 million but are not necessarily “rich”.

Income tax

The Greens also propose to make changes to the income tax system. They would introduce a new top tax rate of 45% for those earning over $100,000 per year, and adjust the tax brackets so that those on lower incomes pay less tax.

Shaw argued that this would be a fairer system, as those who can afford to pay more would be doing so. He also noted that the extra revenue raised would be used to fund important social services like health and education.

Hosking again pushed back against this proposal, arguing that it would discourage high earners from working in New Zealand and would not actually raise much revenue.

The discussion between James Shaw and Mike Hosking highlighted the major differences between the Greens’ tax policy and the current system. While Shaw argues that the current system is not working and needs to be reformed to create a fairer society, Hosking is skeptical that the Greens’ proposals would achieve this goal. Ultimately, it will be up to voters to decide which approach they think is best for New Zealand.