Treasury’s advice proves the Greens' Wealth Tax a fantasy

Responding to Treasury advice casting doubt on the Green Party's wealth tax modelling, the New Zealand Taxpayers' Union is calling on the Greens to withdraw the policy until credible costings are produced.

Taxpayers’ Union spokeswoman, Ella Dickson, said:

"The Greens’ revenue claims depend on unrealistic assumptions that wilfully ignore capital flight and taxpayer behaviour. Our report The Wealth Tax Fantasy showed the flaws in their last proposal, and Treasury advice shows the Greens have just rebadged their wealth tax without fixing any of the underlying problems."

“Treasury warned a 2.5 percent wealth tax would drive significantly more wealth offshore than the Greens have allowed for. That means less investment, less economic activity, and far less revenue than promised."

“Wealth taxes are economically damaging, routinely underperform overseas, and are notoriously difficult to administer. The Greens’ policy is not credible tax reform, it is an uncosted socialist fantasy.”