Of course, I’ll be the first to point out that it’s not just about growing the pie. A fixation on mere growth to the neglect of how exactly that growth is achieved, who benefits and who pays the price, has degraded our environment and given us record inequality, child poverty and homelessness. The rules that dictate whether the benefits of a growing pie are shared or hoarded by a few matter, including for that tired, metaphorical pie’s future growth potential.
Ayling tries to argue that “we must invest in the conditions that allow economies not only to share what they already possess, but actually to grow”. Funnily enough, that’s exactly what the Greens are proposing. What Ayling may not be aware of is that even radical Marxists at the International Monetary Fund and OECD point out that if you want your economy to develop, you’ve got to tackle wealth inequality head on. These institutions’ work illustrates that inequality erodes not just democracy, but eats away at the ability to develop your own economy.
The OECD states “policies to reduce income inequalities should not only be pursued to improve social outcomes but also to sustain long-term growth”. If you wanted to exit the “Zimbabwe currency” Google spiral, you could dare to look at the economies of Spain, Norway and Switzerland. They’re all countries that have wealth taxes, and healthy economies, which Aylying fails to mention. It turns out there are plenty of real-world examples of how a fair tax system that funds productive investments in clean and affordable energy, a healthy environment, and resilient infrastructure is also good for economic development in the long term.
The question the Greens’ tax policy really wants New Zealanders to grapple with is this: what sort of country do we want to be? Do we want to continue down this current economic pathway, where our collective potential is degraded, we lose hundreds of talented people each week and inequality and poverty grows?
Or do we want to build an economy that works for all of us?
It’s worth pondering who benefits from the kinds of arguments that tell regular, hard-working New Zealanders that they should be comfortable paying $22 on every hundred dollars they earn in tax while the wealthiest get away with paying just $9. These numbers are from a 2023 Inland Revenue report revealing a large differential between the tax rates ordinary New Zealanders pay on their full income compared with the “super-wealthy”.
It’s not the vast majority of people in our country. It’s not our crumbling infrastructure. It’s not even our economy. It’s a select few, making record profits and hoarding record wealth while the world burns.
The Greens’ 2.5% annual tax on net assets (excluding the family home) over $10 million means that 96% of New Zealanders will pay less tax, with modified brackets including a tax-free threshold of $10,000.
The Greens believe in democracy. We believe in our country’s creativity, and innovation, and people. We all deserve so much better than what we’re currently getting – and that starts with a fair tax system and investment in the basic things that can ensure we all can thrive. That’s how the pie really grows, and everyone gets fed.
Chlöe Swarbrick is the co-leader of the Green Party and the Auckland Central MP. She is responding to a column by Jonathan Ayling about the Greens’ tax policy on June 25.
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