On the same day, the National government’s other tax changes will come into place, including cuts to income tax.
However, for low-to-middle income earners the small improvements to take-home pay will be mostly wiped out by the increased GST on food, clothing, electricity, rates, and other items that must be accounted for in weekly budgets. It’s the rich and wealthy corporates who’ll get by far the most from the tax cuts.
Prime minister John Key claims the tax changes will result in “a fairer tax system”. That won’t be the case.
It’s because we need to address imbalances in New Zealand’s tax system that the Tax Justice campaign was launched on 22 May. The focus of the campaign is a petition calling on parliament to:
1. Remove GST from food.
2. Tax financial speculation.
Taking GST off food would deliver a tax cut more substantial than what the majority of us are going to get from National’s tax changes.
And instead we’re saying tax the financial speculators, who currently pay no tax. Zilch.
Is it fair that we have to pay tax on one of life’s necessities, food, while something as destructive to the economy as financial speculation goes untaxed? I don’t think so Mr Key.
Introducing a Financial Transactions Tax (FTT) would be the best way to make financial speculators pay tax at the point where their profits are accumulated.
A small percentage tax on financial transactions would net huge sums from mostly overseas speculators, but also local ones. It would be like GST for the rich.
In the last two months we’ve collected over 5,000 signatures for the Tax Justice petition. As more people find out about the campaign we’re confident it’s going to get bigger and bigger. We want to see that black cloud lifted.
To join the Tax Justice campaign, email svpl(at)xtra.co.nz or ph/txt 021-0415 082.
Or visit our webpage www.nogstonfood.org