Green Party Weighs in On Tax Debates

February 2, 2011 New Zealand Taxation

HDR version of The New Zealand Green Party has kicked of its election year campaign by publicizing its initial set of taxation policies for New Zealand, promising a capital gains tax and a environmentally focused economy.

The New Zealand Green Party co-leader Dr Russel Norman gave the annual State of the Planet speech on January 30th, in preparation for this year’s upcoming general election campaigns. The speech centered on the Green Party’s policy outlooks and election promises for the year, which deviated from the expected climate based policy proposals to arguments concentrated on the future of the economy.

Dr Russel Norman claimed that the Green party’s new focus is best described as “Smart Green economics”, and is consistent with elements of Keynesian economics and elements of free market economics, within a framework of finite resources. As the first major proposal of the Party’s new outlook, Dr Norman Russell called for a new capital gains tax to be instated in New Zealand. The Green Party leader said that a capital gains tax was the best way for the government to raise large amounts of tax revenues without harming the economy. He claimed that a capital gains tax should be instated on all properties excluding the family home, which would remove incentives for property investment speculation. It is thought that such a move would lower prices of house ownership in New Zealand, and make great strides in reducing government debt.

In the speech Dr Russel Norman also criticized Prime Minister John Key’s speech, claiming that the suggestion of selling of state assets was financially irresponsible. He claimed that it would not reap any benefits and would only result in heavy debts for future generations of New Zealanders.

Photo by Light Knight