National is claiming a new tax could be on the table for Kiwis after the Prime Minister on Monday didn’t explicitly rule out implementing a wealth tax in the future.
During the 2020 election campaign, Prime Minister Jacinda Ardern was asked whether she would resign rather than implement a wealth tax, something the Greens were advocating for.
“It’s not in play, so there is no need for the hypothetical. It won’t happen… I won’t allow it to happen as Prime Minister,” she said.
On AM on Monday, Ardern was asked about her tax plans, with host Ryan Bridge making the point that she has previously ruled out a wealth tax while leader.
She said she has ruled out a capital gains tax, but wouldn’t “set out a commentary beyond that”.
“We haven’t formulated a policy. In all honesty, it is just not something that we have worked on yet. We are in the role of governing,” she said.
“We have not worked on our tax policy for 2023.”
Both National and ACT have since released statements highlighting Ardern’s refusal to rule out the tax.
“Despite telling New Zealanders during the 2020 election that she would not implement a wealth tax as long as she is Prime Minister, Jacinda Ardern is now signalling a U-turn on that promise,” National’s finance spokesperson Nicola Willis said.
ACT Leader David Seymour said: “Labour is eagerly searching for new taxes to fuel its addiction to spending taxpayers’ money.”
According to the US’ Tax Foundation, a wealth tax is “imposed on an individual’s net wealth, or the market value of their total owned assets minus liabilities”.
“A wealth tax can be narrowly or widely defined, and depending on the definition of wealth, the base for a wealth tax can vary.”
At the 2020 election, the Greens called for a 1 percent tax on individuals’ net wealth over $1 million.
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