Tax Justice petition presented to Parliament

Photo: http://www.nogstonfood.org/

from NZ Herald

Inclement weather today did not stop tax campaigners from presenting to Parliament a 40,000-signature petition calling for GST to be removed from food and a tax placed on financial speculation.

Tax Justice coordinator Vaughan Gunson had intended to join campaigners from as far afield as Whangarei and Dunedin to hand over the petition on the steps of Parliament to Labour's Mangere MP Su'a William Sio, who would then present it to the House.

But he was unable to fly into Wellington and the petition was instead handed over by Wellington campaign organiser Grant Brookes.

Union representatives, Green Party co-leader Russel Norman, Mana Party leader Hone Harawira, and Maori Party MPs Rahui Katene and Te Ururoa Flavell also attended the handover.

"It was great to see them willing to receive our message and to present it to their colleagues in Parliament, and we certainly conveyed our views fairly and strongly,'' Mr Brookes said.

He said polls showed most people wanted GST off food, while he thought people were of the feeling that the wealthiest New Zealanders did pay their fair share of tax.

Mr Brookes was hopeful a broader Tax Justice coalition could emerge, which he said was achievable given the breadth of organisations present today.

Mr Harawira said any move to bridge the wealth divide and reduce inequality was worthy of support.

"GST is a tax that targets the poor because they don't have much money to spend, and nearly everything that they spend gets hit by GST,'' he said.

"On the other hand, financial speculators deal in millions of dollars every day on the world's financial markets, and don't pay anything.''

Labour Party leader Phil Goff this morning said his party supported removing GST from fresh fruit and vegetables, but had not budgeted for changes beyond that.

"We have a fiscal situation that would limit the amount of work that we would be able to do in that area.''

- NZPA

Tax on speculation could be blocked under TPPA

Tax Justice media release
4 April 2011
www.nogstonfood.org

Tax Justice supports the NZ Not For Sale campaign, which is opposing the National-led government’s behind-the-scenes negotiation of the Trans-Pacific Partnership Agreement (TPPA).

“Under the TPPA it would become very difficult to introduce a Financial Transaction Tax in New Zealand, which is one of our campaign goals,” says Vaughan Gunson, Tax Justice campaign coordinator. “Any move to bring in the tax would see government face the prospect of having to pay compensation to global investors.”

“Government decisions that adversely affect the profits of investors from the negotiating countries – Singapore, Chile, Brunei, Australia, Peru, Viet Nam and the United States – could be subject to rulings by international tribunals. That's why the TPPA is such a major threat to the democratic rights of New Zealanders,” says Gunson.

Tax Justice is calling for a Financial Transaction Tax to curb the ability of speculators to make tax-free profits from short-term investments in New Zealand financial markets. The tax would also raise significant government revenue.

“Following the global financial crisis there’s a need to discourage financial speculation, not further open up the New Zealand economy to financial pariahs, which is what will happen if New Zealand signs-on to the TPPA,” says Gunson.

Mr Gunson says momentum is swinging internationally towards a tax on financial transactions that targets the banks, big corporates and the super-rich. In Britain there’s the popular Robin Hood Tax campaign, which is being promoted globally by Oxfam.

Earlier this year the European Parliament voted overwhelming in favor of Financial Transaction Tax (see Euro MPs vote for Financial Transaction Tax, 9 March).

In October 2009, Brazil introduced a 2% Financial Transaction Tax on trading of the Brazilian dollar, to stop speculators destabilising the currency.

30,000 New Zealanders have so far signed the Tax Justice petition that calls for a tax on financial speculation and GST to be removed from food. The petition will be presented to parliament before this year’s General Election.

Spokesperson for the NZ Not For Sale campaign, Murray Horton (also of CAFCA), is currently on a nationwide speaking tour. For details go to http://cafcatour.blogspot.com/

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Euro MPs vote for Financial Transaction Tax

Tax Justice media release
9 March 2011

“The massive vote in support of a Financial Transaction Tax by MPs in the European Parliament is good news for the campaign in New Zealand,” says Vaughan Gunson, Tax Justice campaign coordinator.

“It shows that support for a Financial Transaction Tax which targets the banks, speculators and big corporates is gaining momentum worldwide. New Zealand politicians must take notice.” (See attached article below: ‘MEPs vote in favour of 'Robin Hood' transaction tax,’ 9 March 2011.)

The Tax Justice campaign wants a tax placed on financial speculation, to discourage an economic activity that was behind the global financial crisis, but also to raise significant government revenue.

Greek Socialist Anni Podimata, who drafted the successful resolution for the European Parliament , says that while European citizens have been hit hard by the financial crisis and growing unemployment “the financial sector remains largely under-taxed and has this year enjoyed profits and bonuses at pre-crisis levels.”

“What’s happening in Europe is happening here,” says Gunson. “The Australian-owned banks, for example, have continued to make massive profits, while ordinary people are under increasing financial stress.”

“Because the New Zealand economy is so deregulated global speculators are allowed to continue their profiteering, and not pay any tax to the New Zealand government.”

“It’s hugely unjust that speculators are getting away with paying no tax on their profits, while grassroots New Zealanders get lumped with a tax on food,” says Gunson. “A Financial Transaction Tax is a solution."

Over 25,000 people have so far signed the Tax Justice petition to remove GST from food and tax financial speculation instead.

For more information go to www.nogstonfood.org

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Tax the speculators to help rebuild Christchurch

Tax Justice media release
3 March 2011

“Now more than ever New Zealand needs Tax Justice,” says Vaughan Gunson, Tax Justice campaign coordinator. “We must place a tax on financial speculation to help pay for the rebuilding of Christchurch, rather than cut government spending on essential public services.”

Taxing financial speculation is one of the demands on the Tax Justice petition, along with removing GST from food, which has been signed by over 25,000 New Zealanders.

“The Christchurch earthquake is a devastating blow to the people of that city,” says Gunson, “but that suffering must not be spread to the rest of the country. How we fund the rebuilding of Christchurch will have a long term impact on the well-being of millions of ordinary New Zealanders.”

The Tax Justice campaign calls on all political parties represented in parliament to put serious consideration into the implementation of a tax on financial speculation.

“A Financial Transaction Tax on speculative money flows could potentially raise billions from banks, overseas hedge funds and wealthy corporates operating in New Zealand,” says Gunson. “Treasury officials with access to the relevant information need to be told to investigate how much a Financial Transaction Tax could raise.”

“Financial speculation adds nothing to the New Zealand economy, and is carried out by mega-wealthy individuals and institutions whose only goal is windfall profits – tax them to rebuild Christchurch,” says Gunson.

The tax agenda of John Key’s National government has been to shift the tax burden on to grassroots people, by putting GST up to 15% and giving tax cuts to the rich, including lowering company tax from 30% to 28%, one of the lowest corporate tax rates in the world.

Mr Gunson says that National’s tax agenda, if continued in the wake of the Christchurch earthquake, will heap pain on top of pain for ordinary people.

The Tax Justice campaign supports calls for National’s 2010 tax cuts, which overwhelmingly benefited the wealthy, to be reversed. Removing GST from food would deliver immediate budget relief to struggling low and middle income earners.

For more information on the Tax Justice campaign go to http://www.nogstonfood.org/

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
(09)433 8897
021-0415 082
svpl@xtra.co.nz

Kay Murray
Tax Justice spokesperson
021-1672 843
ksimmondsmurray@xtra.co.nz

Tax Justice campaign in Britain

Tax Justice from PCS Union TV on Vimeo.

The global financial crisis, caused by the speculative activities of the super-rich, resulted in bailouts of banks and other financial institutions in most developed countries in the world, including New Zealand. The cost of the bailouts and the economic fallout from the crisis has hit grassroots people, through job losses and income cuts, but also increased taxes to pay for the bailouts. But often, as this video makes clear, the super-rich and big corporates have been allowed to escape paying the levels of tax they should. Last year, John Key’s National government upped GST to 15% and lowered taxes for the most wealthy people in New Zealand, and gave big corporates a tax cut as well (company tax has been lowered from 30% to 28%, now one of the lowest corporate tax rates on profit in the world). The massive bailouts and tax cuts to the super-rich have led to governments around the world cutting spending on health, education, welfare and other essential public services. No wonder the call for Tax Justice is starting to sound out loud from ordinary people who are angry at what governments, in partnership with the banks and big corporates, are trying to get away with.

Help fight for Tax Justice in New Zealand. Join the campaign to remove GST from food and tax financial speculation instead. 

Click here for more info. Or contact directly Vaughan Gunson, Tax Justice campaign coordinator, email svpl@xtra.co.nz or phone/txt 021-0415 082.

Speculation in food prices is a crime against humanity

Tax Justice media release
25 January 2011

“Financial speculation is causing the big spike in food prices,” says Vaughan Gunson, Tax Justice campaign coordinator.

“The world price of some basic foods have almost doubled over the past year,” says Gunson. “This extreme price volatility is the result of banks and giant investment funds pumping $200 billion into food markets in search of windfall profits.” (see Deborah Doane, The threat of rising food prices, 11 Jan)

The Food Price Index produced by the Food and Agriculture Organisation shows that basic food prices are currently higher than in 2008 when food riots broke out around the world and Kiwis tasted the skyrocketing cost of food.

Mr Gunson says it’s the same people who caused the global financial crisis who are now breaking the budgets of ordinary New Zealanders.

“A super-rich minority is causing untold hurt to people around the world,” says Gunson. “Their manipulation of food markets for profit is a crime against humanity.”

The Tax Justice campaign is advocating that New Zealand join the global crusade against financial speculation. Mr Gunson says the introduction of a tax on speculative money flows would go along way towards discouraging this dangerous economic activity.

“A Financial Transaction Tax of 1% would allow the government to remove GST from food and direct money towards funding public services properly, lifting benefit levels, and creating real jobs,” says Gunson.

There’s currently a splurge of speculation in the Kiwi dollar (see NZ dollar climbs on rising world food prices, 18 Jan), yet the speculators aren’t paying any tax to the New Zealand government. The introduction of a Financial Transaction Tax would net these wealthy overseas speculators for the first time.

“Taxing financial speculation would discourage an activity that destabilises the New Zealand economy,” says Gunson, “and combined with taking GST off food, would shift the tax burden off ordinary people and onto the super-rich. It just makes sense.”

See also today’s earlier media release: New Zealanders want GST taken off food (25 Jan).


For more information on the Tax Justice campaign visit our website www.nogstonfood.org
 

Speculation in food prices is the real crime

Tax Justice media release
17 December 2010

“Stealing food is nowhere near as bad as what banks and speculators are getting away with,” says Vaughan Gunson, Tax Justice campaign coordinator.

“A recent article in my local Whangarei paper referred to people stealing food. This is a crime, so if you’re caught you get locked away.” (See Market fights hunger, Whangarei Leader, 7 Dec)

“Yet the far greater crime is going unpunished,” says Gunson. “Big global banks are fostering an orgy of speculation in world food prices.” (See Bank and Hedge Fund Speculation Causes Food Prices to Soar by Third World Resurgence, 22 Nov).

In 2007-2008, banks and other speculators fled mortgage markets and invested in basic food commodities, driving up prices that flowed through to New Zealanders paying more at the supermarket.

Mr Gunson says the speculators are at it again in 2010. Wheat prices jumped 60% in July because of a rush of speculative investment financed by the banks.

“While a global elite profit from food price speculation, grassroots people around the world are either going hungry or missing out on eating quality food. A massive crime against humanity is being perpetuated by the speculators,” says Gunson.

Statistics NZ recently released figures that show food prices went up 4.8 percent over the last year. While this is bad enough, analysts are predicting worse to come in 2011 as high food prices in commodity markets filter through to the checkout.

The Tax Justice campaign has a two pronged answer to rising food prices: remove GST from food and tax the speculators instead.

“It’s obscene that the government insists on maintaining this horrible tax on food when people are struggling to buy the food they need,” says Gunson.

“And New Zealand must join the global crusade against financial speculation. Introducing a tax on speculative money flows would go along way towards discouraging an economic activity that’s causing so much pain for grassroots people.”

This weekend Tax Justice campaigners are hitting the streets around the country as part of a pre-Xmas signature drive. The aim is to reach 30,000 signatures for the Tax Justice petition by the end of the year.

New Zealanders can sign the Tax Justice petition online at http://www.ipetitions.com/petition/taxjustice/

For more information and comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
(09)433 8897
021-0415 082
svpl@xtra.co.nz

Give speculators the boot!

Tax Justice media release
15 December 2010

“Financial speculators should be given the boot, not welcomed into the country with the promise of paying no tax,” says Vaughan Gunson, Tax Justice campaign coordinator.

Mr Gunson says prime minister John Key’s plans to fast track a tax haven for the super-rich is the opposite of what the government should be doing. (See Key itching for quick action on financial hub, NZ Herald, 2 Dec)

“Big banks and financial traders have just caused the biggest economic meltdown since the Great Depression. Their financial games have caused a lot of New Zealanders to lose their jobs or get in trouble with the bank,” says Gunson.

“We shouldn’t be rewarding a tiny global elite and encouraging a financial activity that inevitably leads to bust.”

“The ballooning government deficit, made worse by National’s tax cuts for the rich, urgently requires new solutions to tax and the economy,” says Gunson.

The Tax Justice campaign wants a tax on financial speculation and the money flows of banks and big corporates. The introduction of a tax on financial transactions of 1 cent in every dollar would potentially net billions of dollars of tax revenue.

“If we taxed the speculators,” says Gunson, “we could afford to take GST off food and do the things the government must do to build an economy that works for people, such as fund public services properly, lift benefit levels, and create real jobs.”

“The support we’re getting on the street for our Tax Justice petition shows that people are unhappy at the inequities in our tax system and want change.”

A pre-Xmas signature drive for the Tax Justice petition will be taking place around the country on Saturday 18 December and Sunday 19 December.

“We expect to finish the year with over 30,000 signatures collected,” says Gunson. “We plan to present a lot more signatures to parliament in August next year.”

New Zealanders can sign the Tax Justice petition online at http://www.ipetitions.com/petition/taxjustice/

For more information and comment on the campaign, contact:

Vaughan Gunson
Tax Justice campaign coordinator
(09)433 8897
021-0415 082
svpl@xtra.co.nz

Video: Tax Justice talk at Alliance conference

Socialist Worker’s Vaughan Gunson spoke to the Alliance Party conference about the Tax Justice Campaign, which is jointly sponsored by Socialist Worker and the Alliance.

This video is part one of four, to watch the rest go to Socialist Worker’s YouTube page: http://www.youtube.com/user/SocialistWorkerNZ

PUBLIC MEETING: Tax Justice and Left Unity

Invitation to discuss:

Tax Justice & Left Unity

7pm, Thursday 11 November

@ Socialist Centre, 86 Princes Street, 
Onehunga, Auckland

Intro speaker: Vaughan Gunson, Tax Justice campaign coordinator
& Socialist Worker national chair

The meeting is hosted by Socialist Worker.

Light refreshments and hospitality will be served.

• Grassroots people are struggling. Food prices are going through the roof. There's simmering anger at National's GST hike. Will GST off food be a cut-through political issue next year?

• Can the demands of the Tax Justice campaign, to remove GST from food and tax financial speculation instead, be won? Would this put a significant dent in the neo-liberal economic model?

• 20,000 signatures have been collected for the Tax Justice petition. How can we build on this and break the campaign into national consciousness?

• What role can the Tax Justice campaign play in popularising an economic alternative to neo-liberalism?

• Could the Tax Justice campaign be linked to the Council of Trade Unions' Alternative Economic Strategy?

• Could a popular Tax Justice campaign be one element in helping to bring about the much needed unity of left forces in NZ?

These and other questions will be discussed after a short intro by Vaughan. The emphasis will be on open discussion and networking. The discussion won't be restricted to the demands and strategy of the Tax Justice campaign. Wider input on the challenges of building a left alternative to neo-liberalism, and what vehicles might best achieve this, are encouraged. Bring your two cents worth!

For more info contact,

Vaughan Gunson

021-0415 082

svpl@xtra.co.nz

*Join the Tax Justice campaign Facebook group.

Tax Justice advisory to broad left

3 November 2010 

20,000 signatures collected for Tax Justice petition

The Tax Justice campaign has collected over 20,000 signatures for a parliamentary petition calling on GST to be removed from all food and a tax placed on financial speculation instead.

The petition’s demands are connecting with a broad range of people angry at the economic hardships they're being made to bear. The rising cost of food is for many New Zealanders a big issue, especially when real incomes levels for most people are either stagnant or falling. (See Council of Trade Unions media release Real incomes falling, 7 October.)

The factors behind the positive popular reception to the Tax Justice petition are going to intensify in the months ahead. The New Zealand Institute of Economic Research has predicted that food price inflation will hit 10 per cent by the end of the year. (See Rising prices to offset October tax cuts, 1 September.)

The stretched budgets of grassroots people, particularly when it comes to the most basic of life’s necessities, food, requires that progressive forces offer solutions, both immediate and longer term.

It’s the view of Tax Justice campaigners that the “common sense” demand to remove GST from food, coupled with a tax revenue replacement that targets the mega-rich, has the potential to become a cut-through political issue for the left.


Invitation to get behind the Tax Justice campaign

In the spirit of greater cooperation and unity amongst leftists, unionists and other supporters of justice for grassroots people, we’ll be approaching a number of organisations and groups over the coming weeks about getting behind the Tax Justice campaign.

The two groups who have initiated the campaign, Socialist Worker and the Alliance Party, are very interesting in discussing how we can collectively grow the campaign into a bigger political force, and what kind of organisational structures might be established to best achieve this.

Already the Tax Justice campaign has received solidarity from members of the Maori Party, Green Party, and the Labour Party, as well as from members of Grey Power and a number of trade unions. Increasing the level of broad and active support for Tax Justice will be essential if we're going to force a major change to neo-liberal tax policy, which is what removing GST from food and the introduction of Financial Transaction Tax would undoubtedly represent.

The potential to break the Tax Justice campaign into national public consciousness is there, it just needs a big enough pool of active supporters to make it happen.

If you would like to discuss with us the prospects for broadening the groups and organisations actively involved in the Tax Justice campaign, please contact Vaughan Gunson, campaign coordinator. Email svpl@xtra.co.nz or phone 021-0415 082.


Two upcoming public meetings

There are two upcoming public meetings where the way forward for the Tax Justice campaign, along with other issues relating to left unity, can be discussed. They are:

Tax Justice & Left Unity
7pm, Thursday 11 November
@ Socialist Centre, 86 Princes Street, Onehunga, Auckland

Intro speaker: Vaughan Gunson, Tax Justice campaign coordinator. Discussion to follow.

For more details, contact Vaughan, svpl@xtra.co.nz or 021-0415 082.


There Is An Alternative - Progressive Economics for the 21st Century
3pm, Saturday 13 November
@ St Johns Church Hall, cnr of Willis & Dixon Street, Wellington

Speakers: Bill Rosenberg (CTU economist), Vaughan Gunson (Tax Justice campaign coordinator, Socialist Worker national chair). Chaired by Andrew McKenzie co-leader Alliance Party.

For more details, contact Kay Murray, ksimmondsmurray@xtra.co.nz.


Both these meetings are open to all leftist, unionists and supporters of justice for grassroots people.


Labour MP to present petition to parliament in 2011

Su’a William Sio, the Labour Party MP for Mangere, has offered to present the current Tax Justice petition to parliament sometime in 2011, most likely prior to the General Election.

Having a South Auckland MP present the petition to parliament will give it real political weight. We extend our thanks to Su’a for making this offer.

For further up-to-date information on the Tax Justice campaign go to our website www.nogstonfood.org The petition can be downloaded there.

And if you’re on Facebook join the ‘No GST on Food’ page. Over 5,500 people already have, making it one of New Zealand’s most popular grassroots political campaigns on Facebook.

Tax Justice campaigners will be working hard for the remainder of 2010 and into 2011. Help us make Tax Justice a big issue next year.


In solidarity,

Tax Justice executive committee:

Grant Brookes (Socialist Worker)
Kay Murray (Alliance Party)
Vaughan Gunson (Socialist Worker)
Victor Billot (Alliance Party)

Report on Tax Justice '10,000'

by Vaughan Gunson
Tax Justice campaign coordinator

18 October 2010

To protest GST going up to 15% on 1st October the Tax Justice campaign organised a nationwide push for signatures to the petition calling on parliament to remove GST from food and tax financial speculation.

As well as getting more signatures for the petition – at a time when resentment towards GST was going to be high – the aim was to expand the network of active campaign supporters and get national media coverage.

20,000 signatures collected to date

After our efforts Friday-Sunday (1-3 October) following the GST hike we’ve collected 20,000 signatures for the petition. That puts the Tax Justice campaign in the serious category.

The bulk of signatures were collected over the three days at organised petition stalls in Northland, Auckland, Hamilton, Rotorua, Tauranga, Wellington, Christchurch and Dunedin, with many more contributions coming in from individuals in other centres (still being reported). See the photo essays on www.nogstonfood.org

Getting close to an additional 10,000 signatures in a short space of time was a good effort by Alliance Party and Socialist Worker members, with the help of a small number of Tax Justice supporters.

The evidence on the streets was that the GST hike had created simmering resentment. A common sentiment expressed was that National’s tax cuts were “rubbish”. Many people were aware of the unfair nature of the income tax cuts, which have seen big tax cuts for the rich and virtually nothing for low and middle income earners once the GST increase is factored in.

For instance, someone earning $15 an hour will be $4.13 better off from the tax changes, while someone earning four times as much – $106,080 annually – will have $43.08 more in their pay packet. Your average CEO earning $265,200 will be richer by a whopping $153.92 a week (Source: Bill Rosenberg, Council of Trade Unions economist and policy director).

The tax changes have also come at a time of rising living costs and stagnant wages. This makes the GST hike particularly painful for people struggling to make ends meet. Inflation is resulting in declining real wages for workers and beneficiaries. (See Council of Trade Unions media release Real incomes falling, 7 October.)

It was the simmering resentment at the unfairness of National’s tax changes, combined with an outlet in the form of the Tax Justice petition, that saw people flocking to petition tables. Large numbers of signatures were often collected in a short space of time. The evidence is clear: the demands of the Tax Justice petition are connecting with grassroots people.

The factors behind the popularity of the Tax Justice petition are going to intensify in the months ahead. New Zealand Institute of Economic Research chief economist Shamubeel Eaqub predicts food price inflation in New Zealand to hit 10 per cent by the end of the year, which will wipe out National’s meager tax cuts for low and middle income earners. (See Rising prices to offset October tax cuts, 1 September.)

Grassroots people are going to be affected by this in a big way. The cost of food is already an issue that people feel very strongly about. The anger is going to intensify in the months ahead and into 2011. We need to be there with the solution that our twin Tax Justice demands provide.

Tax Justice in the media

As expected there was significant media attention focused on the 1st October tax changes and GST increase. A string of Tax Justice media releases tied to the promotion of the Double Day of nationwide signature collecting saw the campaign get some national media coverage. This included:

* Interview with Tax Justice media spokesperson Victor Billot on TVNZ Breakfast on 28 September (See http://tvnz.co.nz/breakfast-news/breakfast-tuesday-september-28-3804261/video?vid=3804333)

* Interview with Tax Justice campaign coordinator Vaughan Gunson that featured in a Newstalk ZB story on GST, which was played on radio stations throughout the country.

* NZPA article (30 September) which was widely published in newspaper and online news sites. (See http://www.nogstonfood.org/2010/09/29/petition-to-take-gst-off-food/)

* Two stories on the TV3 website: GST activists welcome Labour’s change of heart (27 September) and Govt accused of hypocrisy over GST exemptions (29 September).

* An interview with Vaughan Gunson for Radio NZ that was part of their coverage of the GST increase.

* Plus a number of short and longer articles in local community papers throughout the country.

These media breakthroughs were encouraging, but we’ll need significantly more coverage to really break the campaign into national consciousness. We must continue to explore options for getting the media’s attention, but there are no short cuts. The main thing we have to do is get heaps more signatures, so that the media will be forced to take notice.

Expanding the Tax Justice network

Any campaign which aims at achieving tangible success must seek to broaden the network of active supporters, as well as forming alliances with other organisations in pursuit of the goal. “Tax Justice 10,000” helped this process along.

In the course of promoting the Double Day of signature collecting we encountered more individuals who wanted to help. A few dozen people contacted us by email offering their support for the campaign or to enquire about the petition. New volunteers helped collect signatures in Kerikeri, Auckland, Hamilton, Wellington and Christchurch.

In the days either side of 1st October there was a sharp increase in activity on the No GST on Food Facebook page. In the space of a week the number of people who “like” the page almost doubled to 5,000. (As a result of all the activity on the Facebook page there was a big increase in hits to our website, which peaked on 30 September with 310 views.)

Through the Facebook page dozens more people have volunteered to help collect signatures. We’re starting to receive completed signature sheets, boosting our signature total higher every day.

But if we’re going to chalk up some really good numbers for the Tax Justice petition for the rest of this year and into 2011, then we must continue to encourage more volunteers to get actively involved. And crucially, we need other organisations to join the campaign.

Leading up to and including the Double Day of signature collecting there were discussions about the Tax Justice campaign with individuals representing different political organisations.

A Green Party activist and council candidate helped collect signatures in Whangarei, and there were discussions with other Whangarei-based Green Party members about broadening the campaign. In Lower Hutt, a member of VAN (Valley Action Network) organised a petition stall at a local market. Members of the International Socialist Organisation (ISO) in Dunedin helped collect signatures for the petition.

In Auckland, the Tax Justice campaign was invited by Labour Party MP for Mangere Su’a William Sio to attend a Labour Party organised event at the Mangere Mall. The petition proved very popular with grassroot Labour members and was circulated by local organisers of the Labour Party. At the event was Labour leader Phil Goff and Labour list MP Ashraf Choudhary. They both came over to the Tax Justice table and discussed the campaign with our team. Though Labour’s new policy is GST off fresh fruit and vegetables only, the two politicians expressed solidarity with our campaign and happily posed for a photo (see photo essay).

Labour MP to present Tax Justice petition to parliament

In conversations with our team in Mangere, Su’a William Sio offered to present the Tax Justice petition to parliament. We have accepted the offer from Su’a and will liaise with him to present the petition to parliament sometime in 2011.

Having a South Auckland Labour MP present the petition to parliament will give it real weight, and will potentially open doors with other organisations to come in behind the campaign.

The broadening out of people and organisations interested in supporting the campaign through active participation or through expressions of solidarity is very encouraging. In the first instance it reflects the popularity of the campaign – especially the demand to remove GST from food – amongst grassroots people. Nothing would be possible without this reality.

Broad cooperation to achieve our goal

It’s only through broad cooperation and alliances between different organisations and groups that we can hope to affect a major change to neo-liberal tax policy, which is what removing GST off food and the introduction of Financial Transaction Tax would undoubtedly represent.

Broad cooperation around the Tax Justice campaign is achievable. In the coming weeks we will contact some big organisations about supporting the Tax Justice campaign. Our focus in the first instance will be on getting support from Grey Power, trade unions and churches.

The twin demands of the Tax Justice petition have the potential to attract grassroots and institutional support in a big way. The challenge now is to keep the campaign moving forward by expanding our network of active Tax Justice campaigners and collecting more and more signatures, so that by the sheer weight of numbers we break into national consciousness.

In the weeks and months ahead the Tax Justice team will be announcing new initiatives to propel the campaign forward. If you’re already an active supporter of the campaign, a big thank you for your efforts so far. If you want to get active in the campaign then contact us straight away.

If you haven’t already done so please distribute the petition around your networks and print off copies for friends, family and workmates to sign. And send them back to us as soon as possible.

The Tax Justice campaigners will be working hard for the remainder of 2010 and into 2011. Help us make Tax Justice a big issue next year.

Thank you.

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
vgunson@xtra.co.nz

Tax Justice will be an election issue in 2011

Tax Justice media release
18 October 2010

“Tax all forms of income equally no matter how that income is earned” — that was the wording contained in a remit at the Labour Party conference over the weekend (see Quiet comeback for tax on wealth, NZ Herald, 18 Oct).

“Taxing all forms of income is something the Tax Justice campaign endorses,” says Vaughan Gunson, Tax Justice campaign coordinator.

“We want to see financial speculation taxed. It’s currently not,” says Gunson. “Rich individuals and corporates who speculate on price shifts in a range of New Zealand markets are not paying tax at the point where their profits are accumulated.”

Mr Gunson highlights the example of the Kiwi dollar, which is one of the most traded currencies in the world due to unrestrained speculation by global hedge funds and the like. But the speculators pay no tax on any profits they make to the New Zealand government.

“The introduction of a Financial Transaction Tax would allow the government to source much needed tax revenue from the world’s mega-rich,” says Gunson. “They’ll hardly miss it, but the extra tax received will make a difference to the lives of ordinary New Zealanders. For starters, we could offer relief at the supermarket by removing GST from food.”

“We expect the twin demands of the Tax Justice campaign – GST off food and a tax on financial speculation – to be big issues in election year,” says Gunson. “We’ve been getting a lot of support on the street from Labour supporters who agree with what we’re saying.”

The Tax Justice campaign is collecting signatures for a petition calling on GST to be removed from all food and financial speculation to be taxed. 20,000 New Zealanders have so far signed the petition.

For more information on the campaign go to www.nogstonfood.org

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
svpl@xtra.co.nz
021-0415 082

New Zealanders flock to sign Tax Justice petition

Like the new Tax Justice cartoon (see below) people were queuing up to sign the petition at the Otara Markets in Auckland on Saturday 2 October. 565 signatures were collected in a few hours.

Tax Justice media release
3 October 2010

10,000 signatures for a petition calling on parliament to remove GST from food and tax financial speculation have been collected since GST went up to 15% on Friday.

“Tax Justice 10,000 was a big success,” says Vaughan Gunson, coordinator of the campaign.

From Friday to Sunday, petition stalls were organised in Kerikeri, Whangarei, Auckland, Hamilton, Rotorua, Tauranga, Wellington, Christchurch, Oamaru and Dunedin. Plus volunteers in these and other centres collected signatures from friends, family and workmates.

To view a photo essay of “Tax Justice 10,000” go to http://www.nogstonfood.org/2010/10/03/photo-essay-of-tax-justice-10000/

“A comment we kept hearing from people was that National’s tax cuts were rubbish,” says Gunson. “The people flocking to sign our petition weren’t buying the government’s claim that they were going to be better off.” (A view confirmed by an opinion poll commissioned this week by Herald on Sunday, see http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10677867.)

“People are angry at the rising cost of living, which the GST increase is only making worse,” says Gunson. “The pain people are feeling at the supermarket is only going to get worse over the coming months, when food price inflation from the speculative boom in food commodity prices filters through to the checkout.”

New Zealand Institute of Economic Research chief economist Shamubeel Eaqub predicts food price inflation to hit 10 per cent by the end of the year, which will wipe out National’s meager tax cuts for low and middle income earners.

The Tax Justice campaign has now collected over 20,000 signatures since the petition was launched a few months ago. Mr Gunson says this is only the beginning. “We’re buoyed by what we’ve achieved over the last few days and looking forward to working with other organisations who support this campaign.”

“We thank Maori Party MP Rahui Katene for putting forward her private members bill to remove GST from healthy food, which both Labour and Green MPs supported,” says Gunson.

“And we welcome Labour’s new GST policy of removing GST from fresh fruit and vegetables. This is a step in the right direction,” says Gunson.

“That one of the parties of government is breaking with its previous defence of New Zealand’s GST regime as “untouchable” is hugely significant. It’s a boost to our arguments and recognition of the groundswell of public opinion against GST on food.”

For comment, contact

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

or

Victor Billot
Tax Justice media spokesperson
021-482 219
victor@victorbillot.com

Tax Justice campaign hits the streets, unveils new cartoon

Tax Justice media release
1 October 2010

Tax Justice activists will be hitting the streets over the next few days collecting signatures for a parliamentary petition that calls for GST to be removed from food and a tax placed on financial speculation.

Tax Justice media spokesperson Victor Billot says “The level of interest in the campaign has sky rocketed in the last few days as people start to consider the impact of the GST hike on their already stretched weekly budgets.”

He says people are concerned and angry that income tax cuts are going to the already wealthy, while for most of us the tax cuts will be wiped out by the GST going up to 15% and the coming spike in food prices (see Tax Justice media release, 26 September, Tax cuts will be wiped out by food price bubble)

Members of the public can support the campaign by signing the petition and circulating it to friends, family and workmates. Copies of the petition can be downloaded from www.nogstonfood.org

“We’d like people to help us reach our target of 10,000 signatures in two days,” says Mr Billot. “If we can get that many signatures in such a short space of time, it’s because grassroots people are passionate about wanting changes to New Zealand’s current unfair tax system.”

The Facebook page for the campaign has grown rapidly over the last few days, increasing to nearly 4,000 supporters, with no sign of slowing down. See appendix below for a selection of comments made by supporters of the ‘No GST on Food’ Facebook page over the last 24 hours.

Mr Billot says Labour’s new policy to remove GST from fresh fruit and vegetables is a step in the right direction, but GST should be taken off all food. This would deliver a universal tax cut bigger than most people will be getting from the 1st October tax changes.

The Tax Justice petition is raising doable solutions to the current imbalances in the tax system.

Mr Billot says that the idea of a Financial Transactions Tax or "Robin Hood Tax" is becoming increasingly popular around the world.

“A small percentage tax on financial transactions which would easily pay for GST off food, thus allowing the tax burden to be shifted off ordinary people and on to large financial institutions.”

To coincide with our Double Day of signature collecting, 1-2 October, we’re unveiling our new Tax Justice cartoon. The cartoon will be used widely in publicity in the coming weeks and months. It is available to be reproduced in print and digital publications.

For more comment, contact

Victor Billot
Tax Justice media spokesperson
021-482 219

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082


APPENDIX

A selection of comments made in the last 24 hours on the ‘No GST on Food’ Facebook page:

- damn straight NO GST on food! we pay enough taxes and shit that goes to government...they go on about how nzealandrz eat too much bad food! well drop the pricing on the healthy food........on all food FULL STOP! this must change.

- totally immoral that a basic human need is taxed. can't believe kiwi's lay back and take it.

- I agree that the gst should be dropped from certain foods, or the children and the elderly will suffer. If Australia can do it why cant we?

- It’s all about robbing the poor to feed the rich!! .. gezz im sorry john key does your 6 figure salary not cover all your costs !!

-We pay tax on our income why pay more tax on everything else we shouldnt have to pay tax after they take it out of our wages thats enuff

-No GST on food is a good start even better abolish GST altogether. Let the rich pay a tax on money speculation. It wouldn't hurt them and will help the workers a lot.

-the bastard that invented GST should be shot

-Why is it that everything just keeps going up except wages.no wonder people are going over 2 auz 2 live.we need food, so I hope this no gst on food comes through 4 us all.

-I'm really worried about our food bill from tomorrow. It's bad enough already!

-What’s the saying, the poor get poorer and the rich get richer. They need to give and take in some areas. Think NO GST on food would be a good start.

-The Richer get Richer and the Poor get Poorer.....Where’s Robin Hood whenya need him lol Seriously I know that Tax has been around for a Long time but why not increase it on Luxury items and leave the everyday living costs alone

-they complain about obesity being a huge problem...maybe if food was cheaper to buy then fastfood then we wont have the problem...NOO NOO NOO to GST on food

- Unfortunately the with the tax changes and gst hikes the poorer will get poorer and the rich will get richer.

-I support no GST on food. We are told taking GST off of food items is too complicated. I say rubbish to that reasoning. Everything has a UPC code or label and computer software could do it quite easily. Other countries do it, so why is it so hard for New Zealand? Let's all stand together and say, "enough is enough".

-The fact we have GST on food is quite disgraceful. We in NZ need to rise up as a ground swell to have this tax removed. We cannot think of ourselves as a nation of people who care about each others' welfare while we make the most basic need more expensive than necessary. Come on people, get with the play and object.

Claiming GST is universally applied today is the biggest lie

Tax Justice media release
28 September 2010

“John Key has accused the Labour Party of lying in their pamphlet on National’s GST hike, but Mr Key is hardly squeaky clean,” says Vaughan Gunson, Tax Justice campaign coordinator.

“John Key and the National-led government have been spinning untruths about GST,” says Gunson. “Chief among them is the claim that the “beauty” of New Zealand’s GST regime is that it’s universally applied.”

Peter Dunne, Revenue Minister in the National-led government, said in July that “it’s not New Zealand’s policy to have a non-universal GST.” (See Key rules out GST-free food, 21 July 2010.)

“This is not true,” says Gunson. “GST is not applied universally today. The major exemption is for financial services.”

Inland Revenue lists the following financial services as exempted from GST: dealings with money; certain dealings with securities; provision of credit and loans; provision of life insurance; provision of non-deliverable futures contracts and financial options; the payment and collection of interest, principal and dividends; and issuing securities such as stocks and shares.

“The main users of these financial services are rich investors, speculators, banks and other wealthy corporates,” says Gunson.

“Why is it okay for them to get off paying GST, when grassroots people struggling to make ends meet have to pay tax on food?” asks Gunson. “John Key needs to fess up to the people of New Zealand and admit that our tax system has a rotten core.”

“We’re forced to stomach GST on food, while something as destructive to the economy as financial speculation goes untaxed.”

The Tax Justice campaign is promoting a doable solution to New Zealand’s unjust tax system. Over the last few months over 12,000 New Zealanders have signed a petition calling on parliament to:

1. Remove GST from food; and
2. Tax financial speculation.

“The tax revenue the government’s receives from GST on food could easily be replaced by introducing a Financial Transaction Tax (FTT),” says Gunson. “A small percentage tax on financial transactions would net billions from rich speculators and wealthy corporates, who are today enjoying a free ride from GST. We need to move quickly on this now.”

“The issue of tax justice for grassroots Kiwis is not going away. We’re confident the campaign is going to get bigger and bigger.”

Labour’s new GST policy step in right direction

Tax Justice media release
27 September 2010

“Labour is taking a step in the right direction if they're going to campaign for the removal of GST from fresh fruit and vegetables,” says Vaughan Gunson, Tax Justice campaign coordinator.

“The fact that Labour is re-thinking its GST policy, after previously rejecting any changes to GST prior to the 2008 General Election, is testimony to how strongly grassroots people feel about this issue,” says Gunson. “The weight of public opinion can't be ignored.”

“For most Kiwis it’s immoral that food should be made more expensive by a tax,” says Gunson. “Especially at a time when food prices are going through roof and people are really struggling.”

“So Labour’s announcement is welcomed, because it puts another dent in the sanctity of GST, which proponents of this regressive tax have tried so hard to maintain,” says Gunson.

“The Tax Justice campaign, launched in May this year, will continue to fight for the removal off GST from food,” says Gunson. “And to ensure enough government revenue for public services we’re advocating that financial speculation be taxed instead. This hugely damaging economic activity is currently untaxed, which is a gross injustice.”

The focus of the Tax Justice campaign is a petition calling on parliament to: 1) Remove GST from food; and 2) Tax financial speculation.

“Taking GST off food would deliver a bigger tax cut than most of us will be getting from the National government on 1st October,” says Gunson.

“Thanks to National’s GST increase, a family spending $200 a week on food after 1st October will be paying GST of $26.09,” says Gunson. “Take the GST off and you’ve got a substantial tax cut, which would offer some relief at the supermarket for many New Zealanders,” says Gunson.

To protest the GST increase, Tax Justice supporters will be collecting signatures around the country on Friday 1st October and Saturday 2nd October.

“We expect to get a very positive response,” says Gunson. “And we’d welcome Labour Party members giving us a hand.”

Over 12,000 signatures have been collected for the Tax Justice petition. Over 2,600 people like the ‘No GST on food’ Facebook page.

See also these recent media releases:


John Key's other New Zealand flag: "The Land of 15% GST" (23 September).

Tax cuts will be wiped out by food price bubble (26 September 2010).

For more information on the campaign go to www.nogstonfood.org

Tax cuts will be wiped out by food price bubble

Speculation by big banks, hedge funds and other financial parasites is forcing up food prices.

Tax Justice media release
26 September 2010

“There’s concern worldwide that another global food crisis is upon us,” says Vaughan Gunson, Tax Justice campaign coordinator. “The price of food is set to go through the roof, like it did in 2008.”

New Zealand Institute of Economic Research chief economist Shamubeel Eaqub predicts food price inflation in New Zealand to hit 10 per cent by the end of the year, which will wipe out National’s meager tax cuts for low and middle income earners. (See Rising prices to offset October tax cuts)

In response to the food crisis the United Nation’s Food and Agriculture Organisation held an emergency meeting last week in Rome. Olivier De Schutter, the UN’s special rapporteur on food, says the high food prices can only be explained by the emergence of a “speculative bubble”. (See UN warned of major new food crisis at emergency meeting in Rome)

“The statements coming from the UN about the food price bubble are of extreme concern,” says Gunson. “The UN is pointing the finger at the banks, hedge funds and other speculators who are behind the soaring food commodity prices.”

“The last time food prices were caught up in a bubble there were food riots around the world,” says Gunson. “And the number of people suffering from malnutrition globally spiked from 800 million to one billion.” (See The Food Crisis and Food Security: Towards a New World Food Order?)

“We felt the pain here in 2008, too. And we’re still coping with high food prices,” says Gunson.

“That’s because food prices at the supermarket haven’t fallen back to their pre-bubble levels. It’s the nature of the market for supermarket chains and other food producers and distributors to want to hold prices high to maximise profits.”

“New Zealanders need urgent relief from food stress,” says Gunson. “Removing GST from food, as the Tax Justice campaign is advocating, would be a good start.”

“And then we need to do our bit to stamp out speculation, on food and everything else,” says Gunson.

“These global greedies are manipulating the world economy for their own ends, while the rest of us suffer the fallout.”

“Making profits from an activity that impoverishes others – or worse – is a crime against humanity,” says Gunson.

As well as pushing for the removal of GST from food, the Tax Justice campaign is calling for financial speculation to be taxed. Speculators operating in the New Zealand economy currently pay no tax on their wheeling and dealing.

“Compare speculators paying zero tax to people having to pay tax on food and you see that there’s a core injustice at the heart of New Zealand’s tax system,” says Gunson.

“The National government and the opposition Labour Party are either ignorant of the problem, or they’re happy for this shocking injustice to continue.”

The Tax Justice campaign is in the early stages of founding a nationwide network of supporters and activists. “We’re building up for a determined campaign,” says Gunson, “that will force the politicians to listen.”

Since the Tax Justice campaign was launched a few months ago 12,000 people have signed a petition calling for GST to be removed from food and financial speculation to be taxed. “Our experience is that wherever the Tax Justice petition is taken it’s proven very popular,” says Gunson.

On 1-2 October, Tax Justice supporters are going to be out in force around the country collecting signatures to protest the National government increasing GST to 15%.

For more information on the campaign go to www.nogstonfood.org.

For comment, contact

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Victor Billot
Tax Justice media spokesperson
021-482 219
victor@victorbillot.com

Dear supporter of justice for grassroots people

23 September 2010

Tax Justice petition stalls like this one are planned around the country on Friday 1st October and Saturday 2nd October.

On 1st October GST will rise to 15%. To protest the increase of this most regressive tax, a Double Day of nationwide signature collecting for the Tax Justice petition is being organised on 1-2 October.

We're being ambitious and going for 10,000 signatures in two days, to go on top of the 12,000 signatures we've collected since the campaign was launched.

The Tax Justice petition requests parliament to 1) Remove GST from food; and 2) Tax financial speculation. These two demands address the fundamental injustice in New Zealand's tax system. Food, a necessity of life, is taxed, while financial speculation, which is hugely damaging to the economy and the lives of grassroots people, goes untaxed.

YOU CAN HELP THE CAMPAIGN

Contact me straight away if you can help collect signatures in your area on Friday 1st October and Saturday 2nd October. Email Vaughan svpl@xtra.co.nz, or ph/txt 021-0415 082.

Or just take it upon yourself to print off copies of the petition and get your friends, family and workmates to sign. To download the Tax Justice petition click here.

If you do collect signatures on 1-2 October, please email or txt me your tally by Sunday 3 October, so that your efforts can be added to the national total that will be presented to the media.

Your assistance will help keep the twin demands of the Tax Justice campaign in the public eye. The more signatures we get the more attention the media will have to give the campaign and our demands.

Political opportunities will likely flow from increased media exposure and the growing army of signatories and active supporters. Those opportunities could be converted by left forces into broad and popular opposition to the attacks on grassroots people being made by John Key's National government.

For more information on the Tax Justice campaign go to www.nogstonfood.org.

Join the campaign on Facebook, go http://www.facebook.com/#!/pages/No-GST-on-food/119541161411953?ref=ts 2,461 people already have.

We value any feedback on the campaign and where it's going. Contact us if you have some ideas.

In solidarity,

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

“John Key’s other New Zealand flag”

Tax Justice media release
23 September 2010

Last year, prime minister John Key got a lot of media attention for his pen drawing of what he thought a new national flag for New Zealand should look like. He drew a silver fern.

“John Key should have drawn something that better reflected what his government had in store for grassroots New Zealanders,” says Vaughan Gunson, Tax Justice campaign coordinator.

“Because on 1st October a long black cloud will descend on the lives of many New Zealanders when GST goes up to 15%.”

“The GST hike will disproportionately effect low and middle income earners who spend all their income each week on the basics,” says Gunson.

“Once you factor in inflation and stagnant wages, the GST increase will wipeout the meager tax cuts most people get from the National government’s tax changes,” says Gunson.

“While high income earners who save and invest a higher proportion of their incomes, and therefore don’t incur GST, will effectively be paying a lower rate of tax.”

“The injustice is then compounded, because it’s the same people who pay less GST as a proportion of their income who get by far the most from National’s income tax cuts,” says Gunson.

On paper the calculations look like this: someone earning $15 an hour will be $4.13 better off from the tax changes, while someone earning four times as much – $106,080 annually – will have $43.08 more in their pay packet. Your average CEO earning $265,200 will be richer by a whopping $153.92 a week (Source: Bill Rosenberg, Council of Trade Unions economist and policy director).

“As a result of National’s tax changes the rich will have more money to save and invest, allowing them to get richer, thus increasing the already terrible wealth divide in New Zealand,” says Gunson.

The Tax Justice campaign is proposing a fair alternative. The focus of the campaign is petition requesting parliament to:

1) Remove GST from food; and
2) Tax financial speculation.

“Taking GST off food would deliver a tax cut that wouldn’t be unfairly tilted in favour of the rich,” says Gunson. “A family spending $200 a week on food after 1st October will be paying GST of $26.09. Take the GST off food and you’ve got a tax cut more substantial than most of us are going to get from National’s tax changes.”

To protest the GST increase, Tax Justice supporters will be collecting signatures around the country on Friday 1st October and Saturday 2nd October.

“We expect to get a very positive response,” says Gunson. “We will significantly add to the 12,000 signatures we’ve already collected.”

Go to www.nogstonfood.org for more Tax Justice media releases and articles on the campaign.

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
(09)433 8897
021-0415 082
svpl@xtra.co.nz


Victor Billot
Tax Justice media spokesperson
021-482 219
victor@victorbillot.com