Oxfam report shows there’s urgent need for tax on wealth
A recent Oxfam report highlighting the increasing levels of inequality in Aotearoa reveals the urgent need for a wealth tax: Of the wealth created last year, the richest 1% own 28%, while the poorest 30% of the population received less than 1%.
“What we’ve got is a political system where the rich are allowed to get richer, while the poor get poorer. This Oxfam report joins a growing list of studies that show how the wealthy elite avoid taxes, while driving down wages, and depriving people of homes through speculation” says Ricardo Menendez March, Coordinator for Auckland Action Against Poverty.
“We’re calling on Labour’s tax working group to recommend the implementation of a wealth tax that would put a levy on things like bank deposits, real estate, ownership of unincorporated businesses, financial securities, and personal trusts.
“The revenue created by the wealth tax would allow to the Government to build state homes and provide unemployed and employed workers with enough to live on.
“The current capital gains tax proposed by this Labour led Government simply fails to go far enough, as it’s not just the gains, but the capital that needs to be taxed to adequately redistribute wealth in society.
“We’re challenging the idea that it is acceptable for such a small number of people to hold such a great amount of power.
“This Oxfam report confirms what Auckland Action Against Poverty advocates have been witnessing for the past several years; with a growing number of people in poverty queuing up at WINZ offices.
“Last year, Auckland Action Against Poverty launched our Not Enough Left demands based on the lived experiences and visions of beneficiaries for a political system based on equality, not punishment. The accumulation of wealth by a few was a recurring theme in these stories, and a tax on wealth was identified as one of the biggest solutions to address this.”