Tax recommendations: A 'level playing field' or attacking the Kiwi way of life?

February 26, 2019

The finance spokesperson said that was the message the tax recommendations were sending to hard working Kiwis.

The Tax Working Group's recommendations have been described as an attack on the Kiwi way of life, however the Government say the group's report was instead about making a system that is fair to all New Zealanders. 

TVNZ1's Q+A interviewed National's finance spokesperson Amy Adams, who said the recommendations would impact Kiwi aspirations. 

"This isn't just about property, it's about shares, it's about small businesses, it's about lifestyle blocks," Ms Adams said.

"New Zealanders have a strong sense of aspiration, they have a strong sense of wanting to work hard and know that if they do work hard they will be rewarded for that, they want to build up a little bit of a nest egg and hopefully one day leave something to their kids.

"Under this proposal you're better off spending every cent you earn because the message is if you save, if you build a business, if you try to put a nest egg aside, you'll be hit twice."

National Party leader Simon Bridges said last week the findings were a "declaration of war" against farmers and targets all "hard-working New Zealanders".

Professor Jennifer Curtin discusses National’s label for the recent tax recommendations.

However, Finance Minister Grant Roberston said the recommendations instead were about making it a fair system. 

Mr Robertson said work would be needed in the coalition on how the Government would respond to the tax report.

When asked by host Corin Dann about why there were recommendations to tax the business and productive sector, "when the whole purpose of this was to try to get more investment into this and grow the economy," Mr Robertson said it was about creating "a completely level playing field". 

"The tax working group basically said, income is income, wherever it comes from. In doing so that means they're looking at all different sorts of assets."

"We're talking about realisation, it's different from other taxes that people are used to. This is about what happens when you sell something and the gain that you make from the day it's valued going forward not going backwards."

He said the Government were still working through the recommendations. 

"We haven't agreed to them. Small business people are in our mind as we're doing this.

"We're going to consider that alongside creating a tax system that is fair and doesn't unduly incentivise people into areas that aren't productive."

Whena Owen looks at the real implications the tax would have on New Zealanders.

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