Tax Reform on Greens Equality Agenda

The Green Party offered its support of tax reform legislation today, noting that the right type of change to the tax system would help reduce the gap between rich and poor in New Zealand.

“Our support is there if John Key’s Government wants to make a bold move towards a tax system that promotes affordable housing,” co-leader Metiria Turei told a Wellington audience , offering the Green’s nine votes for a capital gains tax and the Party’s consideration of a land tax but ruling out support for either a raise to GST or cuts to the top income tax rates.

The offer comes at a time when support for capital gains or land tax from either ACT or the Maori Party is unclear.

“All New Zealanders deserve affordable housing and changing the tax system could make a real difference,” the Green co-leader said in the Party’s first major speech of 2010.

Mrs Turei launched the Green Party’s political year by affirming its commitment to social equality and laying out three concrete steps towards that goal. As well as tax reform, Mrs Turei called for a raise of the minimum wage to $15/hour and an end to beneficiary bashing.

“The take home pay for a 40 hour a week job on the minimum wage is just $409. Your average rent in Auckland is $384. You simply cannot support a family on 400 bucks a week. The minimum wage must go up.”

Raising the minimum wage also brought economic benefits Mrs Turei noted: “There is an increased demand for goods and services, because people on low incomes spend, not save, most of their money.

“It could save more than $1 billion from the Government’s social assistance budget. A billion dollars we could put into schools, or hospitals, or cleaning up the rivers."

Tax reform and a $15/hour minimum wage contrasted with the National-led government’s current blame-the-victim approach to need and poverty, Mrs Turei noted. Prime Minister John Key “is telling a story that the most vulnerable families are the bad guys. But he is wrong….Our problem is about a lack of jobs, not a lack of will.”

The Government attacks were without evidence Mrs Turei said, citing a recent report by the Auditor-General’s office that showed allegations of benefit abuse and overpayments fell significantly over recent years.

“There is more to the story than John Key tells you,” said Mrs Turei. “The man accused of being on the unemployment benefit for 22 years, has been working as a bus driver part-time, getting as little as $4 a week in benefits and he is being bullied by this government.”

Mrs Turei also spoke about her own experience as a solo parent on the domestic purposes benefit: “I am proud to have been a beneficiary. It was right to be supported to study at university. It was the right thing for our future.

“I have not forgotten my community.”