It was hardly a dream debut for Labour’s long-awaited, much-argued-over tax package for Aotearoa New Zealand.

What was meant to be a carefully choreographed reveal of a capital gains tax (CGT) later this week instead arrived early — leaked to RNZ over the long weekend and hastily confirmed by Chris Hipkins this morning.

In his media conference at Parliament, Labour’s leader downplayed the premature release, saying the details had been circulated widely and could have come from anywhere.

He delivered a stern warning to any leaker, but also said he was not interested in pursuing any sort of investigation.

That is sensible. History shows such hunts usually end badly. Just ask National about Jami-Lee Ross.

Still, the leak will be of some concern to Hipkins.

The party’s internal debate over whether to pursue a wealth tax or CGT has been long and bruising, with strong feelings on both sides.

RNZ understands the caucus vote for a CGT plan was near unanimous – but not quite. And the party’s ruling council and policy council were more divided again.

Hipkins needs those proponents of a wealth tax to now fall in behind the selected proposal.

Unity will be crucial if Labour is to sell yet another version of a policy it has repeatedly failed to convince voters to support.

Containing the risk
Labour knows the political peril of talking tax. It’s been burned before — in 2011, 2014, and 2017.

This time, the party has chosen the smallest possible target: a cautious CGT applying only to property sales, excluding the family home and farms.

The rate would be set at 28 percent, in line with company tax, and would apply to profits made after 1 July 2027.

National disputes the description of “narrow” but compared to the other options on offer, it meets the definition. This does not cover shares, KiwiSaver, inheritances, or personal assets, like classic cars or artwork.

In many respects, it’s little more than an expanded bright-line test — closely resembling the minority view of the 2019 Tax Working Group.

The strategy is clear: keep it simple and sellable.

Labour believes a modest CGT will be more palatable to the public than the more novel and ambitious wealth tax. Capital gains taxes are familiar overseas and no longer as frightening a concept as they once were.

Definition complications
But even the narrowest design can have complications. For example, look to the definition of “family home”.

Labour is using the definition used currently by the brightline test which requires a person to be currently living in that house “most of the time”.

It means that a person who owns just one house, but lives in a rental property elsewhere, would still be taxed if they sold that property.

Keeping the scope tight also limits revenue.

Labour’s own policy paper concedes the returns will be “small relative to GDP and total tax revenue” – roughly $700 million a year.

And almost all of that will go straight into Labour’s accompanying health policy.

The sweetener: A ‘Medicard’ for GP visits
In a bid to soften any political blow, Labour has paired the tax with a tangible benefit — a “Medicard” giving every New Zealander three free GP visits a year.

By tying its CGT to the health system, Labour hopes to frame it not so much as punishment for property owners, but more as a pragmatic way to fund something people actually want.

It’s no mistake that the policy touches the two issues named most important by voters in polling: the cost-of-living and healthcare.

Labour has also intentionally made the entitlement universal to ensure the widest possible appeal — even if critics argue the money would be better targeted to those most in need.

Speaking of the critics, government MPs were practically salivating today, having eagerly awaited this announcement as a potential turning point in the polls.

Labour’s rise in popularity has come despite having little in the way of a policy platform and the coalition hopes the tide will turn as voters look more sceptically at the alternative.

Finance Minister Nicola Willis branded the proposal a “terrible idea”, warning it would hit small businesses that own property.

‘Tall-poppy politics’
Act’s David Seymour called it divisive “tall-poppy politics”, while New Zealand First declared the rollout “a trainwreck”.

NZ First’s post on social media included a noteworthy kicker, describing the CGT as merely “a foot in the door” for the Greens and Te Pāti Māori.

Hipkins today tried to shut down that attack, claiming that Labour’s tax plan would be the next government’s tax plan.

But he received no assistance from his purported partners, with the Greens insisting they would not be relinquishing their advocacy for a wealth tax.

Expect more heat on that front as the election approaches.

RNZ’s latest Reid Research poll shows the task ahead for Labour: 43 percent in support of a CGT, 36 percent opposed, and 22 percent undecided.

That’s not exactly a decisive mandate – but it’s not dismal either.

After months of indecision, Labour is finally in the policy game.

This may not be how it had hoped to roll out its flagship policy, but the real test will be how well it can sell it over the coming months.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

There is a sea change happening in the wider electorate in Aotearoa New Zealand which is counter intuitive to what the polls are saying.

On the one hand the public overwhelmingly support much fairer taxation but the polls tell us we will have an Act/National government in a couple of weeks which will increase unfairness in tax.

The simple answer to this contradiction is that people vote against governments rather than for them and Labour are being punished for failure — a party in policy paralysis — unable to get out of its own way and get anything meaningful done.

Spelling this out is a recent poll conducted by Essential Research for the lobby group Better Taxes for a Better Future which shows the big majority of voters want a capital gains tax, a wealth tax, a windfall profits tax and want the wealthy to pay at least the same tax rates as the rest of us. (A survey conducted by IRD earlier this year found the uber rich pay less than half the tax rates the rest of us pay)

Here are the figures:

Wealth tax
A TVNZ poll released last week shows overwhelming support for a wealth tax in line with Green Party policy.

The poll asked eligible voters if they would support or oppose a wealth tax on the assets of New Zealanders with more than $2 million in assets if having the wealth tax meant everyone got free dental care.

A majority — 63 percent — said they would be in support of it, while 28 percent were opposed. The rest did not know or refused to say.

The polls show the ground has shifted dramatically in recent times and has opened the way for Labour’s traditional values (if they have any life left in them) to flourish. The electorate is wanting fairer taxes and have the free-loading rich pay much more.

But Labour under its current and former leaders has been looking the other way. It is out of touch and faces its heaviest electoral defeat in my lifetime.

National and ACT are doing well not because voters want them but because voters are voting against Labour.

The same thing happened in the 1990 election. After six years of brutal Labour policies under David Lange and Roger Douglas the electorate had had a gutsful. They wanted to stop featherbedding the rich at the expense of the rest of us.

National policies even worse
Labour was thrown out and National came in with policies that were even worse than those proposed by Labour.

The same thing will happen this election.

There is a pervasive belief among self-interested politicians that when they are interviewed for opinion polls people will say they are prepared to pay higher taxes but when they get into the ballot box they vote against tax increases.

But this argument can only apply when the individual voter faces paying more tax. In these recent polls the call is for the undertaxed rich to pay a much fairer share. These tax changes the electorate wants will not impact on the 99 percent of voters who go to the polls.

Even National and Act voters want these taxes — but the Labour leadership remain lost in the neoliberal wilderness. They haven’t got the message.

Labour’s failure means we will have to face three years of awful National/Act policies which will deepen the problems we face.

I haven’t kept count but I have personally heard from dozens of Labour members and voters who have told me they have left the party this year and won’t be voting Labour this year — disgust is the dominant theme.

Only hope is reshaped party
After this election Labour’s only hope is to reshape the party around the changed public attitudes to tax and find its roots once more. That is easier said than done for many reasons.

Labour’s activist base is irredeemably middle class and it only has tenuous links with organised workers (less than 10 percent of private sector workers are in unions) who are a small part of the voting public.

Labour leader Chris Hipkins has shown no sign he is capable of leading the rejuvenation policy, thrust and direction the party needs. He is still in the politics of the late 20th century.

All the indications are that the job of Labour renaissance is beyond him.

Hopefully there will be enough good people left in Labour to do what’s needed.

Republished with permission from The Daily Blog.

Article by AsiaPacificReport.nz

Aotearoa New Zealand’s opposition – and poll leader — National Party’s three biggest donors have a combined net worth of $15 billion.

The bottom 50 percent of NZ has $23 billion.

The top 5 percent of New Zealanders own roughly 50 percent of New Zealand’s wealth, while the bottom 50 percent of New Zealanders own a miserable 5 percent.

IRD proved NZ capitalism is rigged for the rich and business columnist Bernard Hickey calculates that if we had had a basic capital gains tax in place over the last decade, we would have earned $200 billion in tax revenue.

$200 billion would have ensured our public infrastructure wouldn’t be in such an underfunded ruin right now.

There are 14 billionaires in NZ plus 3118 ultra-high net worth individuals with more than $50 million each. Why not start start with them, then move onto the banks, then the property speculators, the climate change polluters and big industry to pay their fair share before making workers pay more tax.

Culture War fights make all the noise, but poor people aren’t sitting around the kitchen table cancelling people for misusing pronouns, they are trying to work out how to pay the bills.

‘Bread and butter’ pressures
“Bread and butter” cost of living pressures are what the New Zealand electorate wants answers to, and that’s where the Left need to step up and push universal policy that lifts that cost from the people.

The Commerce Commission is clear that the supermarket duopoly should be broken up and the state should step in and provide that competition.

We need year long maternity leave.

We need a nationalised Early Education sector that provides free childcare for children under 5.

We need free public transport.

We need free breakfast and lunches in schools.

We need free dental care.

We need 50,000 new state houses.

We need more hospitals, more schools and a teacher’s aid in every class room.

We need climate change adaptation and a resilient rebuilt infrastructure.

Funded by taxing the rich
We need all these things and we need to fund them by taxing the rich who the IRD clearly showed were rigging the system.

That requires political courage but there is none.

No one is willing to fight for tomorrow, they merely want to pacify the present!

Just promise me one thing.

Don’t. You. Dare. Vote. Early. In. 2023!

I can not urge this enough from you all comrades.

Don’t vote early in the 2023 election.

Secrecy of the ballot box
I’m not going to tell you who to vote for because this is a liberal progressive democracy and your right to chose who you want in the secrecy of that ballot box is a sacred privilege and is your right as a citizen.

But what I will beg of you, is to not vote early in 2023.

Comrades, on our horizon is inflation in double figures, geopolitical shockwave after geopolitical shockwave and a global economic depression exacerbated by catastrophic climate change.

As a nation we will face some of the toughest choices and decision making outside of war time and that means you must press those bloody MPs to respond to real policy solutions and make them promise to change things and you can’t do that if you hand your vote over before the election.

Keep demanding concessions and promises for your vote right up until midnight before election day AND THEN cast your vote!

We only get 1 chance every 3 years to hold these politicians’ feet to the fire and they only care before the election, so force real concessions out of them before you elect them.

This election is going to be too important to just let politicians waltz into Parliament without being blistered by our scrutiny.

Demand real concessions from them and THEN vote on Election Day, October 14.

If the Left votes — the Left wins!

Republished with permission from The Daily Blog.

Article by AsiaPacificReport.nz

Cabinet Minister David Parker recently told The Spinoff he’s reading The Triumph of Injustice – how the wealthy avoid paying tax and how to fix it, by Berkeley economists Gabriel Zucman and Emmanuel Saez.

The book complains that leftwing politicians throughout the world have forsaken their historic duty to innovate on taxation and force wealthy vested interests to pay their fair share. The authors say governments of both left and right have capitulated unnecessarily to the interests of the wealthy in setting policies on tax and spending.

Parker shares this ethos and it’s undoubtedly a big part of his decision to revolt against his leader.

First, Parker ignored constitutional conventions and spoke out against the Prime Minister’s decision last month to rule out implementing any capital gains or wealth taxes. And last week he resigned as Minister of Revenue, saying it was “untenable” for him to continue in the role given Hipkins’ stance on tax.

Clearly, Parker is highly aggrieved at Hipkins’ decision to rule out a substantially more progressive taxation regime, especially when there is such strong public openness to it.

In May, a Newshub survey showed 53 per cent of voters wanted a wealth tax implemented. And last week, a 1News poll showed 52 per cent supported a capital gains tax on rental property.

Parker has become the progressive voice of Labour
Parker has thrown a real spanner in the works for Chris Hipkins at a crucial time in Labour’s re-election campaign. Such dissent from a Cabinet Minister is highly unusual.

It’s also refreshing that it’s over a matter of principle and policy, rather than personality, performance, or ambition.

There will be some Labour MPs and supporters annoyed with Parker for adding to Labour’s woes, especially when the government is already looking chaotic. He’s essentially declared a “vote of no confidence” in his own party’s tax policy.

This is not the staunch loyalty and unity that Labour has come to expect over the last decade, whereby policy differences are suppressed or kept in-house.

But even though Parker was being criticised last week by commentators for throwing a “tantrum” in resigning his Revenue portfolio, this charge won’t really stick, as he just doesn’t have that reputation.

His protest is one of principle, not wounded pride or vanity, and it’s one that will be shared within the wider party.

In taking such a strong stance on progressive taxation, and so openly opposing Hipkins as being too cautious and conservative, Parker has become something of a beacon for those in Labour and the wider political left who are discontented over this government’s failure to deliver on traditional Labour concerns.

Is there a future for Parker in Labour?
Parker’s outspokenness may be a sign that he’s had enough, and is looking to leave politics before long. Being on the party list means he can opt out of Parliament at any time.

After the election, he may decide it’s time to retire, especially if Labour loses power. In fact, Parker has long been rumoured to be considering his retirement from politics, so it might just be that the time has finally come.

A private decision to leave might explain why Parker has decided to put up and not just shut up, and publicly distance himself from Labour’s decisions on tax for the sake of his reputation.

It’s also possible that Parker has chosen to try to pressure Labour towards a more progressive position on taxation, and this is the start of a bigger campaign. If so, he would be playing the long game.

Parker is now established as the most progressive voice in Labour, which could see him move up the caucus ladder when Hipkins eventually moves on — especially if Labour is defeated at the election in October.

And Hipkins might have inadvertently invited opponents to want to replace him with a more progressive politician when he made his “captain’s call” to rule out any sort of real tax reform for as long as he holds the role.

Given that they had an absolute majority in the last three years they can’t blame anyone else. And should they lose the election, the analysis from within Labour will certainly be that they were too centrist and didn’t do enough.

Parker would be a strong contender for the leadership sometime in the next term of Parliament. That is if he wants it and hasn’t simply had enough. There are signs that he would be keen — he ran for the top job in 2014, with Nanaia Mahuta as a running mate, but lost out to David Cunliffe.

Last week he reiterated that he was up for a fight, explaining his decision to stand down as Minister for Revenue, saying, “I’m an agent for change — for progressive change.

“I’ve been that way all of my political life and I’ve still got lots of energy as shown by the scraps that I’ve got into in the last couple of weeks on transport.”

Of course, when the time comes to replace Hipkins, the party will face the temptation to look for a younger and “fresher” leader. Until very recently, the likes of Kiri Allan and Michael Wood were seen as the future, but those options have disappeared.

And the party might do well looking to someone with more proven experience.

Parker could fit that bill — he’s been in Parliament for 21 years and served in the Helen Clark administration as Attorney-General and Minister of Transport. He is seen as an incredibly solid, reliable politician, with a very deep-thinking policy mind.

By contrast, the rest of the cabinet often seems anti-intellectual and bereft of any ideas or deep thinking, which means that they are too often captured by whatever new agendas the government departments have pushed on them.

Arguably that’s why the blunt approaches of centralisation and co-governance have so easily become the dominant parts of Labour’s two terms in power.

Labour needs Parker’s progressive intellectual politics
Regardless of whether Parker ever gets near the leadership again, it’s clear he has much to offer in pushing the party in a more progressive direction. Certainly, Labour could benefit from a proper policy reset and revival — which Hipkins hasn’t been able to achieve.

The new leader managed to throw lots of old policy on the bonfire, and he successfully re-branded Labour as being more about sausages and “bread and butter” issues, but Hipkins hasn’t yet been able to reinject any substantial positive new policies or ethos.

Parker’s dissent this week indicates that frustration from progressives in Labour is growing, and there are some very significant policy differences going on in the ruling party of government.

For the health of the party, and for the good of the wider political left, hopefully Parker will continue to be a maverick, positioning himself as an advocate of boldness and progressive change.

Parker recently selected Thomas Piketty’s Capital in the Twenty-First Century as the book “Everyone should read”. He explained that “As a politician who believes in social mobility and egalitarian outcomes, this book inspired me to seek the revenue portfolio”.

That Parker has now had to give away that portfolio says something unfortunate about the party and government he is part of. And if the last week also signals that Parker is on his way out of politics, that too would be a shame.

After all, in a time when parliamentary politics is about scandal, and the government has lost so many ministers over issues of personal behaviour, it would be sad to lose a minister who is passionate about delivering policies to fix the problems of wealthy vested interests and inequality.

Dr Bryce Edwards is a political scientist and an independent analyst with The Democracy Project. He writes a regular column titled Political Roundup in Evening Report.

Article by AsiaPacificReport.nz

Last month The Daily Blog offered its New Year infamous news media gongs — and blasts — for 2022. In this extract, editor and publisher Martyn Bradbury names the mainstream media “blind spots”.

Graham Adams over at The Platform made the argument this year that the failure of mainstream media to engage with the debates occurring online is a threat to democracy.

With trust in New Zealand media at an all time low, I wondered what is the list of topics that you simply are NOT allowed to discuss on NZ mainstream media.

Here is my list of 17 topics over 30 years in New Zealand media:

1. Palestine: You cannot talk about the brutal occupation of Palestine by Israel in NZ media. It’s just not allowed, any discussion has to be framed as “Poor Israelis being terrorised by evil angry Muslims”. There is never focus on the brutal occupation and when it ever does emerge in the media it’s always insinuated that any criticism is anti-Semitism.
2. Child Poverty NEVER adult poverty: We only talk about child poverty because they deserve our pity. Adults in poverty can go screw themselves. Despite numbering around 800,000, adults in poverty are there because they “choose” to be there. The most important myth of neoliberalism is that your success is all your own, as is your failure. If an adult is in poverty, neoliberal cultural mythology states that is all on them and we have no obligation to help. That’s why we only ever talk endlessly about children in poverty because the vast majority of hard-hearted New Zealanders want to blame adults in poverty on them so we can pretend to be egalitarian without actually having to implement any policy.
3. The Neoliberal NZ experiment: You are never allowed to question the de-unionised work force that amputated wages, you can never question selling off our assets, you can never criticise the growth über alles mentality, you are never allowed to attack the free market outcomes and you can’t step back and evaluate the 35-year neoliberal experiment in New Zealand because you remind the wage slaves of the horror of it all.
4. Class: You cannot point out that the demarcation line in a capitalist democracy like New Zealand is the 1 percent richest plus their 9 percent enablers vs the 90 percent rest of us. Oh, you can wank on and on about your identity and your feelings about your identity in a never ending intersectionist diversity pronoun word salad, but you can’t point out that it’s really the 90 percent us vs the 10 percent them class break down because that would be effective and we can’t have effective on mainstream media when feelings are the currency to audience solidarity in an ever diminishing pie of attention.
5. Immigration: It must always be framed as positive. It can never be argued that it is a cheap and lazy growth model that pushes down wages and places domestic poor in competition with International student language school scams and exploited migrant workers. Any criticism of Immigration makes you a xenophobe and because the Middle Classes like travelling and have global skills for sale, they see any criticism of migrants as an attack on their economic privileges.
6. Hypertourism: We are never allowed to ask “how many is too many, you greedies”. The tourism industry that doesn’t give a shit about us locals, live for the 4 million tourists who visit annually. We are not allowed to ask why that amount of air travel is sustainable, we are not allowed to ask why selling Red Bull and V at tourist stops is somehow an economic miracle and we are certainly not allowed to question why these tourists aren’t directly being taxed meaningfully for the infrastructure they clog.
7. Dairy as a Sunset Industry: We are never allowed to point out that the millisecond the manufactured food industry can make synthetic milk powder, they will dump us as a base ingredient and the entire dairy industry overnight will collapse. With synthetic milks and meats here within a decade, it is time to radically cull herds, focus on only organic and free range sustainable herds and move away from mass production dairy forever. No one is allowed to mention the iceberg that is looming up in front of the Fonteera Titanic.
8. B-E-L-I-E-V-E victims: It’s like How to Kill a MockingBird was never written. People making serious allegations should be taken seriously, not B-E-L-I-E-V-E-D. That’s a tad fanatical Christian for me. It’s led to a change in our sexual assault laws where the Greens and Labour removed the only defence to rape so as to get more convictions, which when you think about it, is cult like and terrifying. Gerrymandering the law to ensure conviction isn’t justice, but in the current B-E-L-I-E-V-E victims culture it sure is and anyone saying otherwise is probably a rape apologist who should be put in prison immediately.
9. The Trans debate: This debate is so toxic and anyone asking any question gets immediately decried as transphobic. I’ve seen nuclear reactor meltdowns that are less radioactive than this debate. I’m so terrified I’m not going to say anything other than “please don’t hurt my family” for even mentioning it.
10. It’s never climate change for this catastrophic weather event: Catastrophic weather event after catastrophic weather event but it’s never connected to global warming! It’s like the weather is changing cataclysmically around us but because it’s not 100 percent sure that that cigarette you are smoking right now is the one that causes that lump inside you to become cancer, so we can’t connect this catastrophic weather event with a climate warming model that states clearly that we will see more and more catastrophic weather events.
11. Scoops: No New Zealand media will never acknowledge another media’s scoop in spite of a united front being able to generate more exposure and better journalism.
12. Te Reo fanaticism: You are not allowed to point out that barely 5 percent of the population speak Te Reo and that everyone who militantly fires up about it being an “official language” never seem that antagonistic about the lack of sign language use. Look, my daughter goes to a Māori immersion class and when she speaks Te Reo it makes me cry joyfully and I feel more connected to NZ than any other single moment. But endlessly ramming it down people’s throats seems woke language policing rather than a shared cultural treasure. You can still be an OK human being and not speak Te Reo.
13. Māori land confiscation: Māori suffered losing 95 percent of their land in less than a century, they were almost decimated by disease and technology brought via colonisation, they endured the 1863 Settlements Act, they survived blatant lies and falsehoods devised to create the pretext for confiscation, and saw violence in the Waikato. Māori have lived throughout that entire experience and still get told to be grateful because Pākehā brought blankets, tobacco and “technology”.
14. The Disabled: Almost 25 percent of New Zealand is disabled, yet for such a staggeringly huge number of people, their interests get little mention in the mainstream media.
15. Corporate Iwi: You can’t bring up that that the corporate model used for Iwi to negotiate settlements is outrageous and has created a Māori capitalist elite who are as venal as Pākehā capitalists.
16. Police worship: One of the most embarrassing parts about living in New Zealand is the disgusting manner in which so many acquiesce to the police. It’s never the cop’s fault when they shoot someone, it’s never the cop’s fault when they chase people to their death, it’s never the cop’s fault for planting evidence, it’s never the cops fault for using interrogation methods that bully false confessions out of vulnerable people. I think there is a settler cultural chip on our shoulders that always asks the mounted constabulary to bash those scary Māori at the edge of town because we are frightened of what goes bump in the night. We willingly give police total desecration to kill and maim and frame as long as long as they keep us safe. It’s sickening.
17. House prices will increase FOREVER! Too many middle class folk are now property speculators and they must see their values climb to afford the extra credit cards the bank sends them. We can never talk about house prices coming down. They must never fall. Screw the homeless, scre the generations locked out of home ownership and screw the working poor. Buying a house is only for the children of the middle classes now. Screw everyone else. Boomer cradle to the grave subsidisations that didn’t extend to any other generation. Free Ben and Jerry Ice Cream for every Boomer forever! ME! ME! ME!

You’ll also note that because so many media are dependent on real estate advertising, there’s never been a better time to buy!

Martyn “Bomber” Bradbury is a New Zealand media commentator, former radio and TV host, and former executive producer of Alt TV — a now-defunct alternative music and culture channel. He is publisher of The Daily Blog and writes blogs at Tumeke! and TDB. Republished with permission.

Article by AsiaPacificReport.nz