Steve Chadwick: Bold, fairer tax policy will help drive economy

As a country we are deep in debt and our economy is struggling. We need to be able to change both of these things fast. But the Government's prescription of selling our valuable assets to overseas investors is short-sighted and will leave us worse off in the long-term.
That's why Labour has announced an alternative plan to secure a prosperous, long-term future for all New Zealanders - one that charts a course for a stronger, more resilient economy but which will allow us to keep our valuable assets for the benefit of future generations.
On July 14 Labour announced its plan for a fairer tax system, in a bold set of policies designed to give the vast majority of New Zealander's a tax cut, drive economic growth and pay off debt.
There are four major announcements in the package:
Firstly, a comprehensive, not retrospective capital gains tax (excluding the family home), which will mean that New Zealanders who derive income from capital gains will be treated the same as wage and salary earners. This will affect fewer than 10 per cent of New Zealanders in any one year.
Currently, if someone receives a $40,000 salary, they pay tax on every single dollar they earn.
If, however, someone sells a rental property for $40,000 profit, they don't pay a cent in tax. The same applies for investments.
At the moment interest on money in the bank is taxed, whereas investment in property is not. We don't think this is fair.
Secondly, Labour will establish a $5000 tax-free zone. Our tax cut is worth around $1000 a year for a two-income family, including superannuitants. We think it is only right that all hard-working New Zealanders, no matter how much they earn, receive a fair and equitable tax cut.
Thirdly, Labour will reintroduce a top tax rate at 39 per cent for all those earning over $150,000 per year. This will affect about 2 per cent of New Zealanders. Finally, Labour will take all GST off fresh fruit and vegetables.Over the past year fruit and veges have increased by almost 16 per cent. National's increase to GST in October last year only made it harder to make ends meet. Labour's policy will take the pressure off family budgets and help Kiwis make healthy choices.
We have gone for a bold and fair set of tax policies as a real alternative to National's short-term approach of selling off our assets.
Our policy announcement will allow us to pay off government debt, keep our assets and grow the economy, while giving hard-working Kiwis a break.
I have been out door knocking with my team since the announcement and we have been well received. Most people like the point of difference.