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Liarbour Tax Policy

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Labour pledges to raise tax on earnings over $180k

Charlie Dreaver, Political Reporter RNZ

The Labour Party is promising to increase tax on the country’s highest two percent of earners and close loopholes so multinationals pay their fair share of tax.

The party has released its tax policy and the new top rate of 39 percent on earnings over $180,000 is the sole change.

Tax rates for companies and trusts would not change.

The policy is forecast to generate $550 million of revenue a year.

Labour finance spokesperson Grant Robertson said the policy is about maintaining investment in crucial services, while keeping tax rates exactly the same as they are now for 98 percent of people.

“Our plan strikes a balance as we recover from Covid-19. It will avoid the cuts to services being suggested by the National Party, and also help keep a lid on debt as we support the economic recovery from a 1-in-100 year shock.

“The necessary borrowing for the Covid-19 response meant we could fund emergency measures like the wage subsidy, which protected 1.7 million jobs and gave businesses and workers confidence during lockdown. But we have to be careful about not running up more debt than necessary for our recovery.”

Robertson said the new rate would cost an extra $23 a week for those earning $200,000.

“We know from the experience of other countries – like Australia, Canada and the UK – that their economies grow strongly when higher earners are paying tax rates above 39 percent. When New Zealand previously had a 39 percent top rate, it certainly didn’t stop GDP from growing at annual rates of three percent and four percent,” he said.

Labour is also promising to continue work with the OECD to find a solution to the issue of multi-national corporations not paying their share of tax.

“Labour will continue to work to get an international agreement that will see a comprehensive regime for multinational corporations to pay their fair share. But we also need to be prepared to put in place our own rules to ensure fairness, if that agreement is not possible,” Robertson said.

He said Labour would be prepared to implement a Digital Services Tax (DST).

“Current projections from IRD estimate a DST will raise between $30m and $80m of revenue a year,” he said.

16 COMMENTS

  1. Liarbour have given Cullen a boost before he slips off this mortal coil, a tax…….. the rich bastards tax. And are they all so really rich? FFS what good will that do to help the economy? Liarbour bastards will all see this as ” good job” , nø one earns that sort of money apart from the parliamentarians and a few sycophants attached to the system, but most have sweated blood to achieve that, don’t see them sitting on the couch with their hands out.

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    • Lets hope the useless bastard dies before the election. It would be the KIND thing to do. Depriving him of the pain of knowing his liarbour pardy has lost and Trump has won. Please please let it be so…

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  2. I do not believe the $550 million / yr. That has to be BS. Sounds like someone has calculated the total tax paid by those earning over $180K and not the marginal increase in tax above $180k —but even if they made that error, it still seems way out.

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  3. A question for nasska and johnboy. 🙂

    For Australian shearers.
    “Mate cracks 200 sheep shorn.
    That is roughly $650 for the day.
    It is hard work but it is there for those with the ticker to do it.
    In the stand beside him a fella made $950 for the day.
    Some people can’t find work and some fellas don’t want it and the question these guys ask is why the hell do we have to pay for them with our taxes?
    How many sheep do I have to shear to cover for a lazy person?”

    A pic has the answer.
    https://www.facebook.com/BarnabyJoyceMP/?eid=ARBT4UnJS4hHGL_Wlekj1zqejwfEx0D5PkoONsrCXaKEJ2SDW3iLTgFwrTzxVpjtmv8oMNIcW5WIJp2O&hc_ref=ARSabf2LlOh1HsehI0d4kT4sjcspCENWRzD9Qb2k9S4lp16juU1MuYT-

    Shear a sheep? Plant a tree? and one has to pay the government, as many others demand money extorting for their ‘extortionately’, lifestyle.

    The sounds like a major shake up will happen in the wool industry, as even the merino fine wool struggles to cover the cost of shearing.

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    • This is the best answer I’ve found to date:

      Once upon a time, there was a little red hen who scratched about the barnyard until she uncovered some grains of wheat. She called her neighbours and said, “If we plant this wheat, we shall have bread to eat. Who will help me plant it?”

      “Not I,” said the cow.
      “Not I,” said the duck.
      “Not I,” said the pig.
      “Not I,” said the goose.
      “Then I will,” said the little red hen.

      And she did. The wheat grew tall and ripened into a golden grain. “Who will help me reap my wheat?” asked the little red hen.

      “Not I,” said the duck.
      “Out of my classification,” said the pig.
      “I’d lose my seniority,” said the cow.
      “I’d lose my unemployment compensation,” said the goose.
      “Then I will,” said the little red hen.

      And she did. At last it came time to bake the bread. “Who will help me bake the bread?” asked the little red hen.

      “That would be overtime for me,” said the cow.
      “I’d lose my welfare benefits,” said the duck.
      “I’m a dropout and never learned how,” said the pig.
      “If I’m to be the only helper, that’s discrimination,” said the goose.
      “Then I will,” said the little red hen.

      She baked five loaves and held them up for her neighbours to see. They all wanted some and, in fact, demanded a share. But the little red hen said, “No, I can eat the five loaves myself.”

      “Excess profits,” cried the cow.
      “Capitalist leech!” screeched the duck.
      “I demand equal rights!” yelled the goose.
      And the pig just grunted.

      And they painted “unfair” picket signs and marched round and round the little red hen, shouting obscenities.

      When the government agent came, he said to the little red hen, “You must not be greedy.”

      ”But I earned the bread,” said the little red hen.

      ”Exactly,” said the agent. “That is the wonderful free enterprise system. But under our modern government regulations, the productive workers must divide their product with the idle.”

      And they lived happily ever after, including the little red hen, who smiled and clucked, “I am grateful. I am grateful.”

      But her neighbours wondered why she never again baked any more bread.

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      • That goose in the story, better be careful where it lays its eggs too, in case a rumour starts about gold and hoarding, as it will be more than ‘equalized’.

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      • I am offended by that story. It’s so cruel of the little red hen to stop production just because she wasn’t paid. Get with the covid-cindy programme, embrace socialism before it’s forced upon us all.

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  4. When the bread was gone, the Little Red Hen gave
    her neighbours exactly what they deserved. Chicken shit.

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  5. If they just reduced government expenditure, and insisted that those able to work did actually work, no dropkick excuses accepted, there would be more actually paying tax and a lower rate would cover the reasonable costs of government.

    I am not satisfied for example that funding the Green School in Taranaki is a reasonable cost on tge taxpayer along with several others from the PGF and supposedly “ Shovel ready” stable. The obfuscation instead of simply cancelling the Green School matter did not give this taxpayer any confidence in the Coalition Ministers involved.

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  6. There was a political debate at Auckland Grammar School today : 7th formers listening to Chloe swarbrick, David Seymour, the National dude from northcote and a labour lawyer called Helen (who many of the young men detested). Students were allowed to ask questions and plenty were asked about the unfair planned tax take and also the cockwomble idea about a public holiday for Matariki …. my sons said there were a few woke cunts who will still vote for cindy but many young men were adamantly opposed to her policy – there was a lot of support for grammar old boy David … one son said chloe debated well then added he would never vote for her as he would be estranged from the family 🙃

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