Of course, I\u2019ll be the first to point out that it\u2019s 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\u2019s future growth potential.<\/p>\n
Ayling tries to argue that \u201cwe must invest in the conditions that allow economies not only to share what they already possess, but actually to grow\u201d<\/a>. Funnily enough, that\u2019s 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\u2019ve got to tackle wealth inequality head on. These institutions\u2019 work illustrates that inequality erodes not just democracy, but eats away at the ability to develop your own economy.<\/p>\n The OECD states \u201cpolicies to reduce income inequalities should not only be pursued to improve social outcomes but also to sustain long-term growth\u201d. If you wanted to exit the \u201cZimbabwe currency\u201d Google spiral, you could dare to look at the economies of Spain, Norway and Switzerland. They\u2019re 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.<\/p>\n The question the Greens\u2019 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?<\/p>\n Or do we want to build an economy that works for all of us?<\/p>\n It\u2019s 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 \u201csuper-wealthy\u201d. <\/p>\n It\u2019s not the vast majority of people in our country. It\u2019s not our crumbling infrastructure. It\u2019s not even our economy. It\u2019s a select few, making record profits and hoarding record wealth while the world burns.<\/p>\n The Greens\u2019 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.<\/p>\n The Greens believe in democracy. We believe in our country\u2019s creativity, and innovation, and people. We all deserve so much better than what we\u2019re currently getting – and that starts with a fair tax system and investment in the basic things that can ensure we all can thrive. That\u2019s how the pie really grows, and everyone gets fed.<\/p>\n Chl\u00f6e Swarbrick is the co-leader of the Green Party and the Auckland Central MP. She is responding to a column by Jonathan Ayling<\/a> about the Greens\u2019 tax policy on June 25.<\/p>\n