PHOTO: A poverty advocate says the proposed tax could disadvantage Polynesian families. Credits: Image – Getty. Newshub
A poverty advocate says the Green Party’s proposed wealth tax will disadvantage families that are asset rich but cash poor.
The proposed wealth tax would introduce a 1 percent tax on net assets over $1 million and 2 percent over $2 million.
Housing wealth under a mortgage wouldn’t count, nor would “normal household goods worth less than $50,000”, including vehicles. The party says this would raise $7.9 billion in its first year.
But Māngere Budgeting Services CEO Darryl Evans told the AM Show on Monday the policy doesn’t take into account people who own a home but have low incomes.
“I totally believe that the wealthiest in the country should be paying their fair share of tax and many avoid tax. But actually, we’ve got clients that are asset wealthy, they own a $1 million house but they are cash poor – there is simply not enough money and they are going to food banks.”
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