Super rich New Zealand families are paying a median tax rate of 9.4 per cent compared with middle wealth New Zealanders paying 20.2 per cent. Animation / Ben Cummins
A rally supporting contentious wealth taxes is planned for downtown Auckland next weekend.
“We are struggling with a cost of living crisis and a housing crisis,” Tax the Rich rally organisers wrote ahead of the planned August 19 protest.
The organisers called on Prime Minister Chris Hipkins to stop rulingout a wealth tax or a capital gains tax.
The rally is expected to include community activists, some Green MPs and delegates from unions including First Union, which organised this week’s Westpac bank worker strike.
Chris Sullivan, a Catholic deacon at St Mark’s in Pakuranga, told the Herald he would be at the rally.
“The church has been concerned for a long time about the disparity of distribution of wealth, most importantly because of the hardship this causes the poor.”
The union for Westpac's workers, who went on strike this week, is among supporters of the rally. Photo / Dean Purcell
Sullivan said a highly unequal income and tax system also harmed wealthy people, because it could foster negative attitudes towards the rich.
He said increases to the minimum wage and the adoption in some workplaces of the living wage had improved the situation for some of the lowest-paid workers.
But he said cost of living pressures were a major problem for many Kiwis.
“I’m married with children so I know what it’s like to provide for a family.”
He said from his Christian perspective he believed wealth was created by God for everyone to share.
Sullivan said a wealth tax or capital gains tax would boost Government revenues which could then be allocated to benefits or other support likely to alleviate pressures families faced from high food and living costs.
Hipkins last month revealed he torpedoed a wealth tax Labour had been considering for this year’s Budget.
That position was at odds with the opinion of then-Revenue Minister David Parker, who voiced disappointment and by his own request was relieved of the portfolio.
David Parker (second from right), did not shy away from voicing displeasure at PM Chris Hipkins' (second from left) decision to scupper a wealth tax. Photo / Alex Burton
Meanwhile, Tax the Rich rally organisers also cited child poverty and climate change as areas of concern.
Unite union’s Joe Carolan said most New Zealanders wanted a wealth or capital tax gains and even some wealthy people supported such a tax.
“They realise that the burden falls primarily on workers and we’re seeing knock-on effects in public services, health, education, housing starved of funds.
“Young people can’t get houses ... A lot of our workers are paying close to half their income on rent,” Carolan said.
“So there is this anger rising.”
He said Renters United and the Post Primary Teachers’ Association supported the rally.
If the organisers attract as much support as is being advertised, the rally attendees may be an eclectic coalition.
Carolan said that broad mix of supporters would not undermine the rally’s cohesion or strength.
“We are not telling people you need to do it this way or that way.”
Carolan said groups preparing to rally agreed on the need for greater equality and were concerned a centre-right government or lack of reform under Labour would undermine the fight against poverty and climate change.
He said System Change Aotearoa, a rally organiser, gained momentum as a movement highlighting climate change risks after the catastrophic 2019 Australian bushfires.
The System Change Aotearoa page said activists preparing to gather at Britomart wanted a wealth tax for climate action, universal public services, housing, lower taxes for workers, and ending poverty.
“Far too many children live in poverty, and the threat of catastrophic climate change looms over us larger than ever. Now more than ever before, it is time for the richest people in this country to pay their fair share. It is time to tax the rich.”
Referring to wealth taxes, it added: “With the danger of a National-Act coalition winning this year’s election and setting our country back decades, we are calling for Hipkins to reverse this disastrous announcement.”
The National Party has repeatedly opposed so-called wealth taxes.
“The Coalition of Chaos is plainly divided on tax, with the Greens hugely in favour of wealth taxes and Labour fighting internally over them,” party leader Christopher Luxon said last month.
“You cannot tax your way to a strong economy.”
John Weekes is online business editor. He has covered courts, politics, crime and consumer affairs. He rejoined the Herald in 2020, previously working at Stuff and News Regional, Australia.
