Tax isn't something to fear... / A.J. Hendry

It's the contribution we all make to build the sort of Aotearoa we all want to live in...

We’re told constantly we don’t have the resources to end poverty, to house our kids, to clean and care for our planet. We’re told to be patient, change happens in increments, it takes time. But what if that’s because we’re playing with one hand tied behind our back?

Is it true that we don’t have enough to go round? Or have we simply chosen to retain a tax system which does not serve our collective needs?

A recent report completed by the IRD highlighted that the top 300 wealthiest families pay a smaller percentage of tax than the majority of us. For example, on average, most workers will pay a tax rate of about 20.2%. On the other hand, some of New Zealand’s wealthiest families are more likely to pay a much lower rate of about 9.4%. On top of this the Greens recently brought to attention the fact that a small number of New Zealanders have around $470 billion stashed in trusts. Wealth, which – according to the Greens - if taxed and distributed equitably, could be enough to end poverty in Aotearoa and ensure all our kids have the resources they need to live well.

There can often be a degree of fear that comes up when we talk about tax. But, when we break it down, tax is simply the contribution we make to build the sort of society we all want to live in.

If we value a society where all our whānau have access to good healthy homes, have food on the table, are able to access decent health care and wellbeing services, one which prioritizes people and planet, and grows healthy, safe, and thriving communities, we can have it.

Key to realizing these aspirations is to ensure that we build an economic system that distributes our nation’s wealth equitably.

And that means getting our tax settings right.

This is not a rich vs. poor thing. It’s not about hating the rich or blaming the wealthy for having wealth. At the end of the day, they have simply benefited from the system we’ve created.

No, this is about acknowledging that we all live in community with one another, and realizing, that if we want our communities to thrive, we all have a responsibility to do our part to contribute to the overall good.

Inequality has been enabled by tax policy that has created the perfect environment in which inequality can grow. If we want to change that, we can.

We simply have to be willing to build a tax system that is fair, equitable and just, one which is able to ensure we have the resources we need to achieve our collective aspirations.

When I think tax, I think of our health system, I think of decent roads, and reliable public transport. I think of living in a country where no one goes to bed hungry, and where everyone has a roof over their heads. I think of my kids having access to great education, and quality mental health care.

I think of the sort of world I want to see my kids grow up in.

A world where we all thrive, where each of us has what we need, where poverty and homelessness have been eradicated, because we chose to come together to ensure each of us has what we need.

Ensuring we have a tax system that works for all of us is within everyone’s best interests. When we end poverty and reduce inequality, we will all benefit.

We can build this world. Some people want us to believe it will never happen, that there isn’t the support for tax reform. And yet, I’m not convinced that’s true. Over recent years I've definitely noticed a shift in the debate. More of us are awakening to the reality of how unjust our current system is.

And yet, if we want to see this change come about, it's you and I who must make it known that we support reform. When the mood of the people becomes too loud to ignore, that is when reform will happen.

In short, we must give our elected officials the courage of their own convictions.

Is a wealth tax and CGT the silver bullet that will solve all of our problems? No. But it is one important tool that we can use to help us realize our collective vision for our communities.

An equitable tax system means a functioning health care system, decent housing, good infrastructure, support for your family when they're doing it rough, clean drinking water, and livable public spaces. It’s a better resourced schooling system and improvements to our social safety net. Closing the tax loop holes that allows some to amass hordes of wealth, while many more suffer and struggle, is within all our interests.

In the end tax isn't something to fear. 

It's the contribution we all make to build the sort of Aotearoa we all want to live in. 

And no one should be exempt from paying their part.

 #LoveIsTheWay

A.J. Hendry is a Laidlaw College graduate, and a Youth Development Worker and rangatahi advocate, working in the Youth Housing and Homelessness space. He leads a service supporting rangatahi experiencing homelessness and is also an advocate working collectively to end youth homelessness in Aotearoa. He is also the curator and creator of When Lambs Are Silent.