Grant Robertson: Criticism shows we got tax policy right

Published: Sept. 9, 2020, 10:10 p.m.

Labour is standing firm - saying its new tax policy isn't about taxing people on big salaries.
The party yesterday promised, if re-elected, it would introduce a new 39 per cent top tax rate on anyone earning over $180,000 a year, which would bring in $550 million in revenue a year.
That money would be put towards health, education and paying down New Zealand's Covid-19 debt.
Finance Minister Grant Robertson told Mike Hosking the revenue will be useful, in case the Covid-19 wage subsidy has to be paid out again.
"This is about a permanent change to the tax system that will bring this amount of revenue in the initial period and on into the future as well."
He said injecting $2 billion of revenue across the four year budget period into health and education would be valuable.
"Obviously we'll get criticism for this policy. It's coming from all directions, so I think it means we got the balance about right." 
Yesterday, Jacinda Ardern said: "Now is the time to provide New Zealanders with certainty and with confidence."
Both Robertson and Ardern pointed out that even with the increased top tax rate, wealthy New Zealanders still pay less in tax than they would if they lived in Australia.
In fact, the proposed top tax bracket still means that New Zealand is in the bottom third of the 36 OECD countries when it comes to a top tax rate.
And it's with this that the Green Party take issue.
Although co-leader James Shaw said a higher top tax rate was "long overdue" it was still simply not enough.
"It is tinkering that won't address the long-term challenges facing Aotearoa."
The party wants New Zealand's richest to be taxed much, much more.
Shaw wants two more tax brackets added, one at 36 per cent for people earning more than $100,000 and one at 42 per cent at $150,000.
At the moment, the highest tax bracket is 33 per cent – paid by those earning more than $70,000 a year.
"With the Greens in Government, we will push for taxation policy that truly addresses the challenges we face, so everyone can live with dignity," Shaw said.
But the Greens tax plan looks unlikely to be a reality even if it is able to form a coalition with Labour after the election, with Robertson ruling out any concessions.