We Need to Have an Adult kōrero About Tax / A.J. Hendry
It is probably safe to say that few of us really love tax. In a way, tax is sort of like eating ya veggies. No one really wants to, but everyone says they’re good for you...
Kia ora whānau,
In today’s article, we’re diving into one of those conversations we really need to talk about more. Tax. Now, I know most of us don’t love talking about it, but it’s important, and what we do about it, has a huge impact on all of us. It’s also not a left or right thing. At the end of the day, getting our tax settings right is a benefit to all of us.
So yea, hope you read through, and if you do I’d love to hear your thoughts in the comment section at the end.
Enjoy, and hope you’re having a great day!
Ngā mihi,
A.J. Hendry
We need to have an adult conversation about tax.
It is probably safe to say that few of us really love tax. In a way, tax is sort of like eating ya veggies. No one really wants to, but everyone says they’re good for you.
And yet, history would show us that without a comprehensive and progressive tax on wealth and capitol, countries struggle to build equitable societies.
Tax is important. It's our tax which pays for the services and resources we need as a community.
When we lower tax, we limit what we can do as a society. If you want better infrastructure, more housing, increased and improved health services, all these things cost. As a community, our tax is what we agree to contribute to build the Aotearoa we want to become.
Yes, nothings free. We pay for it. But, that's what community is about. When we pay tax, we are sharing our resources with one another in order to ensure that we as a community have what we need to thrive.
And this is where tax needs to be equitable. In order not to burden people, our tax system should be progressive, with individuals, businesses and corporations paying in proportion to what they have.
Sure there's a conversation about how much tax we want to pay. But, that conversation needs to be coupled to the reality of what sort of society we want to build.
If we want a more Just and equitable society, a progressive tax system that targets wealth and capital, redistributes wealth, and ensures we all have the resources we need, is imperative.
We're coming up to election year, which means we're going to have a lot of conversations around tax. One side will say we need less, the other will say we need to keep it steady, and not rock the boat.
And yet, neither option really serves the majority of us.
When we look at what is going on in Aotearoa, it is clear we are facing significant challenges.
Our health system is under pressure, with health professionals underpaid and over worked. Many of our whānau are struggling on poverty wages, living in unsuitable and unstable housing. Key infrastructure needed to create equitable access to our cities is lacking. Climate change is a looming threat, one which demands a radical and transformational shift towards a sustainable and green economy, and yet we’re dragging our feet. And wherever you look within the community and social sector, people are under pressure, burnt out, doing what they can on the fumes of an oily rag.
Now, is this because we don't have enough resources to make things happen?
No, not at all. The top 10% of households in this country hold approximately 50% of all wealth in Aotearoa, whereas the poorest half have next to nothing. And if that statistic wasn’t shocking enough, academics like Max Rashbrook, author of Too Much Money, would argue that it’s likely more due to the international trend of rich individuals being quite good at hiding their wealth. In fact, drilling into that further, Rashbrooke argues in his book that the richest 1% are worth 68 times more than the average New Zealander.
But, it’s not just individuals who hold mass amounts of wealth. Large corporations and business are also extracting wealth from our communities, without any requirement to ensure that wealth is invested back into our communities. This week our Prime Minister acknowledged that our banks have made excessive profits off the back of the Covid years. And recently the Commerce Commission highlighted that supermarket operators were doing the same, making an excess of $1million a day.
So, despite the rhetoric that things are tight, and that there’s not enough to go around, it’s just not the reality. The problem we face is that we've failed to implement an equitable and progressive tax system. One that addresses the huge inequities that exist within Aotearoa, and ensures wealth is redistributed Justly.
Tax cuts, when you add them up, don't really help the majority of us. Whereas the status quo, isn't targeted enough to redistribute resources in an equitable manner.
What we need is a truly progressive tax system that targets wealth and capitol in order to ensure that wealth can be distributed where it needs to be to make the biggest difference for our communities.
Tax isn't the boogeyman everyone tells us it is.
Tax, when we get the settings right, means we are able to share our resources to ensure we all have decent health care, safe and stable housing, accessible cities, and communities where our whānau have their basic human rights met, and are able to thrive.
We don't need to be afraid of tax.
What we need is get smarter on what tax settings we require in order to build the Aotearoa we all want to live in.
A.J. Hendry is a Laidlaw College graduate, and a Youth Development Worker and housing 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.
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