The Wealth Tax Fantasy

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.”