Taxation

Alliance Party Taxation Policy

Preamble

  • Under the neo-liberal policies of successive Labour and National Governments, taxes were cut for the wealthiest people in our society, increasing the gap between rich and poor.

  • The Alliance support a progressive taxation system where people on high incomes and businesses with large profits pay more, while those on low incomes pay less.

  • Flat taxes such as GST hit those on low or fixed incomes the hardest. A fairer system would be a tax on financial transactions. This would also dampen down speculation on the financial markets.

  • A fair tax system based on the ability to pay would also provide revenue to fully fund public services. All New Zealanders would benefit from free education, free health care, and a more stable, secure society.

We stand for the following policies:

  • Introduction of a more progressive income tax regime with tax cuts for the majority of New Zealanders and increased taxes for those on higher incomes.

  • Tax cuts for those on low incomes: Under the Alliance tax policy 74% of taxpayers would pay less income tax.

  • First $10 000 tax free.

  • Elimination of flat taxes such as GST. Immediate elimination of GST on food.

  • KiwiCare” health tax, whereby 1.3% of total taxable income be treated as dedicated to health.

  • Introduction of financial transactions tax (FTT) at the low rate of 2 cents per $100, to be charged on withdrawals only, not deposits.

  • Introduction of capital gains tax. Inheritance tax on amounts over $500 000, at 20 cents in the dollar.

  • Increasing taxes on casinos to Australian levels.

  • Carbon taxes to encourage efficient and renewable energy use.

  • Investment in our country’s future: The healthy government surpluses of recent years mean there is money to invest in free education in out schools and in public tertiary education.

  • Restoring the land tax abolished in 1992. Exemptions would be made for residential land (private homes), farmland, Crown’s Conservation estate, and Maori Customary land. Small businesses would fall below the threshold.