Friday 28 January 2011

Financial Transactions Tax to stop asset sales

Tax Justice media release
28 January 2011

The Tax Justice Campaign says changes to the tax system could be the key to stopping privatization of New Zealand’s public assets.

Tax Justice Campaign spokesperson Kay Murray says the solution to the so-called debt crisis is not to sell the few remaining public assets but to change the tax system.

She says the Prime Minister’s claim that New Zealand has to sell assets because we are in debt is nonsense when the National Government has just handed out tax cuts that benefited the very wealthy – making debt worse.

“The National Government has contributed to this so-called debt problem by its tax changes which were both unaffordable and unfair.”

The very wealthy had received large tax cuts whereas low to middle income earners had been hit by GST increases, inflation and low or no wage increases.

A Financial Transactions Tax could provide income to roll back unfair taxes like GST, pay for social spending, or pay off debt.

The Tax Justice Campaign is running a successful petition to remove GST off food and introduce a Financial Transactions Tax.

The goal is to take the tax burden off the hard working majority of low to middle income New Zealanders and tax the unproductive profiteering of financial speculation instead.

The Financial Transactions Tax is gaining support around the world.

A “Robin Hood Tax” campaign in the UK has gained massive support for a Financial Transactions Tax, and even the conservative French President Sarkozy has recently proposed a modest version of the Financial Transactions Tax.

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