Wealth tax is ‘a bottom line’ for a Green-Labor government: Genter

A rift has opened in the relationship between the Greens and the Labor Party after the Greens demanded that a wealth tax be part of any future Coalition government deal.

The Greens’ electoral policies include a plan to make Kiwis with a net worth greater than $ 1 million pay 1 percent of their wealth to the government as tax.

Those worth more than $ 2 million would pay 2 percent of their estate as taxes.

Greens MP Julie Anne Genter told a Newstalk ZB small business panel discussion today that fiscal policy is a “basic” condition that must be met in order for her party to join a second coalition government with the Labor.

However, Labor MP Stuart Nash was quick to reject the idea, saying that Labor would not introduce a wealth tax.

“[A wealth tax was] off the table, “he said.

Contradictory positions have added uncertainty about the elections, with fiscal policy as a key weapon wielded by opposition parties.

If Labor were unable to win enough votes to rule alone, today’s comments raise the possibility that both Labor and the Greens would have to compromise on their declared positions to form a government.

NZ First MP Fletcher Tabuteau said Genter’s comments showed why the prospect of Labor and the Greens ruling by themselves, without the checks and balances provided by NZ First, was “terrifying.”

“We have tested ourselves in this last government, we have accomplished an immense amount of work, and what we are saying is that we have also stopped some nonsense,” he said.

“And this wealth tax is an example of that. And we’ve made it clear. No new taxes.”

National MP Andrew Bayly called the Greens’ policy absurd.

“The big problem for New Zealanders, if in fact (the Greens) are around the negotiating table, is that (the Greens) want to push a policy like this, and that’s the most dangerous thing,” he said.

Simon Court of the Act Party said the comments showed what would await voters whether they voted for Labor or the Greens.

“What we are hearing from the Labor Party and the Greens is that their money is actually their money,” he said.

Genter defended the wealth tax, saying it would only affect the wealthiest 6 percent of kiwis.

“Any sensible economist knows that we cannot continue with the status quo. There is a small percentage of New Zealanders who would be affected by this tax; they are the wealthiest 6% of New Zealanders,” Genter said.

“He is not an individual who owns a $ 2 million home and has a $ 1.5 million mortgage.

“Tax reform has to be an end result, this county will be no better if we continue to allow the richest people and the richest New Zealanders to accumulate more and more wealth.”

However, Nash said that Treasurer Grant Robertson had ruled out the imposition of estate taxes.

“As finance minister, I have looked at a wealth tax and I think it is very, very difficult to implement,” he said.

“It’s about unrealized gains, which makes it very difficult for people who are rich in assets and poor in cash flow to pay.”

The debate came as part of the Small Business General Election Discussion hosted by MYOB to give small and medium-sized businesses the opportunity to hear from key representatives of each major political party on how they plan to help them recover from the economic pain caused. by Covid-19. .