The New Zealand Taxpayers’ Union has today released a new briefing paper, The Wealth Tax Fantasy, exposing the economic risks and unrealistic assumptions behind the Green Party’s proposed wealth tax. The paper finds the policy would hit farmers, retirees, and small business owners while raising far less revenue than claimed.

Taxpayers’ Union Policy Analyst, Austin Ellingham-Banks, said:

“The Greens are proposing one of the most aggressive wealth taxes in the developed world, but the numbers simply don’t stack up.”

“The idea this only hits the ‘top 3 percent’ is misleading. Retirees, farmers, and small business owners are already over the threshold — and without inflation adjustment, more Kiwis will be dragged in every year.”

“For farmers, the tax bill can exceed what the farm actually earns. For small businesses, it means paying tax on assets, not income, forcing owners to cut back investment or sell up.”

“And it’s double taxation. Income that’s already been taxed gets taxed again, year after year, just for being saved or invested.”

“Overseas experience is clear: wealth taxes drive investment offshore and raise less than promised. Treasury has already warned the Greens’ approach would be economically costly.”

“This policy is light on evidence, heavy on wishful thinking, and ultimately just another tax on aspiration.”

The New Zealand Taxpayers' Union has today released a new report, Green with Envy: Wealth, Death, and Trust Taxes Examined, exposing the real-world impact of the Green Party's proposed $17 billion tax grab. The report finds the policies would hit far more than the super-wealthy, catching homeowners, farmers, retirees, and small business owners across the country.

Taxpayers’ Union Policy Analyst, Austin Ellingham-Banks, said:

"The Greens are proposing one of the most aggressive tax regimes of its kind anywhere in the developed world, resulting in a broad-based raid on Kiwis who’ve worked hard, saved, and built something over a lifetime."

"The idea this only hits the wealthy simply doesn't stack up. One in five Kiwi homes is held in a trust, and the Greens would tax those assets from the first dollar. In Auckland, that means an annual bill of over $18,000 on a mortgage-free family home, or $3,600 for first home buyers with a 20 percent deposit."

"And it doesn't stop there. A 33 percent death tax would force many families to sell farms, homes, or businesses just to pay the bill. Inheriting the average dairy farm would trigger a $1.2 million tax bill. There is nothing fair about taxing grief, or taxing the same income again when it's earned, saved, and finally passed on."

"Most countries that have tried wealth taxes have scrapped them because they drive investment and talent offshore. Death taxes are even worse, New Zealand tried one and abandoned it in 1993 because it crushed farming families and raised almost nothing."

“This package is light on evidence, heavy on populism, and green with envy.”