PHOTO: Nicola Willis (Source: 1News)
National Party’s Criticism of Labour’s Tax Considerations
Nicola Willis: “Labour loves tax like a shark loves blood”
National Party finance spokeswoman Nicola Willis expressed her criticism of the Labour Party’s tax initiatives. She stated that the revelation of Labour considering wealth and capital gains taxes prior to the Budget demonstrated their fondness for taxation, likening it to a shark’s affinity for blood.
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Labour’s Consideration of Wealth and Capital Gains Taxes
Government Worked on Potential Taxes for Budget 2023
This morning, Treasury’s Budget 2023 tax initiatives proactive information release disclosed that the Government had undertaken work on the possibility of implementing a wealth tax and capital gains tax. These tax measures were being considered as part of a broader tax switch for Budget 2023.
Prime Minister Chris Hipkins’ Response
Shortly after the release of this information, Prime Minister Chris Hipkins, in a statement ruling out these taxes under his leadership, acknowledged that work had indeed been conducted on them leading up to this year’s Budget. However, he personally decided against their implementation.
Labour’s Poll Results and Opposition Criticism
The announcement from Hipkins came after the publication of a Talbot Mills poll, revealing that Labour received its lowest result since 2019, with 31% support for the party vote. This placed them five points below the National Party’s 36% support.
In response to these developments, National Party leader Christopher Luxon accused the Labour Party of cynicism for initially considering the wealth tax and capital gains tax but subsequently attempting to rule them out to protect their standing in the polls. Luxon emphasized the apparent division within the left-wing coalition, with the Greens favoring wealth taxes and Labour facing internal conflicts over them.
Finance Minister Grant Robertson’s Defense of Labour’s Stance
Robertson’s Focus on Social Justice and Fairness
In defense of Labour’s position, Finance Minister Grant Robertson stated that his priorities centered around social justice, fairness, and providing opportunities for all New Zealanders. He emphasized their commitment to building more state houses, supporting apprenticeships, and implementing tax changes that aimed to enhance fairness. While they had considered other tax measures, they ultimately decided against their implementation.
Response from Other Political Parties
Green Party’s Determination for a Fairer Tax System
Green Party co-leader James Shaw responded by stating that political leaders should not determine what happens after the election. The Green Party has consistently advocated for the introduction of wealth and capital gains taxes, and Shaw affirmed their commitment to fighting for a fairer tax system. He criticized governments for hesitating to tax the wealthy and urged political leaders to make bold decisions to uplift families out of poverty.
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ACT Party’s Proposal for Tax Reform
ACT Party leader David Seymour commented on the potential outcome of a Labour-Green-Te Pāti Māori government. He suggested that the Greens and Māori Party would collaborate with Labour’s “capital gains caucus” to pressure Hipkins into introducing a capital gains tax. Seymour advocated for ACT’s two-tier tax structure, which includes a carbon tax refund and lower income offset, claiming that it would benefit everyone financially.
SOURCE: 1NEWS