One economist claims the Greens’ wealth tax will hit more Kiwis than the Party thinks.
The Greens say the tax, which has become a hot issue in the final week of the election, would only affect the top six per cent of the population.
However, New Zealand Initiative economist Eric Crampton told Heather du Plessis-Allan the real number’s closer to 20 per cent.
He expects future generations will also build wealth over their lifetime, reaching a peak after retirement.
“We need to be thinking not just about who is currently subject to the wealth tax, but who can we expect to be subject to the wealth tax.”
The Green Party want a tax of 1% on net worth of over $1 million. The problem is that you only need a standard debt-free house in Auckland to qualify for that. Waikanae people have been hit extremely hard by the KCDC’s rates increases over the last decade (including this year) and this extra tax would simply be intolerable for a lot of retired people here. Many may be asset rich, but they are income poor. —Eds