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Labour needs a wealth tax

The Editor,  The Dominion Post,  Wellington

10/07/2020

The work of French economist Thomas Piketty, author of “Capital in the 21st Century”, has shown that to reduce inequality requires taxing high wealth (assets).  This is now mainstream thinking.  The Greens proposed tax on wealth in excess of 1M$ is a modest attempt to take advantage of this new realization.  There is still work to be done to determine what $$ thresholds should apply.

The description of this modest tax as a ‘far-left’ policy is laughable, but also provides a chance to look at an important indicator of “who we are” here in Aotearoa New Zealand.  A wealth tax is so main stream today that not to adopt this kind of tax indicates intent to increase inequality.  Is Labour still intending to characterize its government as ‘well-being’?  The adoption or not of some form of a wealth tax will be the main indicator of ‘who they are’ this election.

Sincerely,

Richard Keller

published Mon, 13/07