The Government has wasted $5 million dollars, abused the information gathering powers of the IRD, and politicised officials, for the sake of a report that tells us nothing we don’t already know, says the Taxpayers’ Union.

Responding to the High Wealth Individuals Research Project report just released by IRD, Taxpayers’ Union spokesman Jordan Williams said:

“There’s nothing new in here. The report confirms that we have a highly progressive income tax system, compliance is good, and those who can afford to pay a lot more do so. Thanks for the newsflash, Captain Obvious”

“It also confirms that the wealthy obtain most of their economic income from capital gains that are not taxed. A fifth-form economics student could have told David Parker that.”

“Fundamentally, the report concludes that high net wealth families are only paying 9% of their economic income in tax. But the report shows that most of that economic income is unrealised capital gains. No one in the world taxes that, and it is disinformation to encourage comparisons to those primarily earning PAYE income.”

“The report totally ignores the risky nature of capital gains. The short point is that investing in a business is more risky than turning up to a job and demands appropriate returns to encourage much needed investment. Tax rates need to reflect that, as well as the fact that New Zealand, like all countries, compete for capital.”

“Everyone supports evidence-based public policy. This report is policy looking for evidence and its timing is clearly designed to stoke resentment and justify an envy tax that will make New Zealand poorer.”

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