Listen now (25 min) | Hipkins rules out wealth tax for his time as PM after ditching plans in Budget for a revenue-neutral wealth tax on the top 0.5% to pay for a $20/week tax cut for bottom 99.5% because...just because.

Absolutely great read from Bernard Hickey on Hipkins’ wealth tax announcement and the treasury report released yesterday:

That’s it. It will now be almost impossible for a wealth or capital gains tax to be implemented within the next decade or two.

The future of Aotearoa’s political economy will now remain frozen in its stagnant, unequal, unjust, unproductive and unhealthy state for the forseeable future. That’s what our leaders, and ultimately the only voters that matter, have decided. Those hoping to change that frozen landscape should now look after themselves and their families, and/or hope and work for an electoral miracle that gives parties who want such taxes dominant positions in any post-election negotiation.

  •  jennifilm   ( @jennifilm@beehaw.org ) OPEnglish
    5•1 year ago

    Yeah, I’m really puzzled at what they’re thinking. I suspect this most recent statement is entirely motivated by wanting to control the narrative going into the election after the treasury report yesterday, but I’m also confused as to why they didn’t continue with the tax switch plan in the report. Seems like an easy win and relatively easy to communicate - my (pessimistic) feeling is they’re just not wanting to risk any chance of an election loss at all.

    I agree with you - I really like Bernard’s take and I think the tone of it is absolutely spot on, because this really is an ongoing issue of parties (and voters) ignoring obvious solutions - but I don’t think it’s off the cards for a whole generation. I think this election is going to be a fascinating one, especially with the amount the smaller parties are picking up in the polling. You’re right, in 10-20 years so many of the problems we’re facing now are going to be so much more evident and affecting so many more of us.