If not a wealth tax, then what?

The resurgent debate about a wealth tax and generational divide might feel like typical election year territory but demography grounds it in reality

Mōrena and welcome to The Bulletin for Thursday, March 9, by Anna Rawhiti-Connell. Presented in partnership with Z Energy.

In today’s edition: you might notice the Bulletin looks different today, I explain why; outgoing children’s commissioner raises serious concerns about new system; another former Labour minister and public sector board member questioned about political neutrality; but first, a new survey reveals an intergenerational divide on the question of how we pay for public transport but Treasury is lukewarm on one of the most popular suggestions

(Image: Getty/Archi Banal)

Wealth tax spotlighted after Ministry of Transport survey

There’s a note that’s been saved to my phone since last August which unhelpfully just says “Tā Mark Solomon, 2050, retirees”. Helpfully, I remember why I saved it. Speaking at the Writers Festival last year, Solomon cited figures from Stats NZ that point to one quarter of the population being over 65 by 2050. Debate about a wealth tax was sparked by a Ministry of Transport (MoT) survey unearthed by the Herald’s Thomas Coughlan this week (paywalled). The story has prompted National’s Nicola Willis to suggest Labour is still eyeing up some sort of wealth tax. All typical election year stuff but if you think about the cost of superannuation and healthcare as our population ages, tax policy debate starts taking on the simple form of how we will pay a future full of retirees— a reality that won’t change, no matter who wins this year’s election.

80% of young people want wealth tax or other forms of charging to pay for public transport

Bernard Hickey looks at the MoT survey results on The Spinoff this morning. It’s worth noting the survey didn’t seek to be representative of the population and sample size is small. The survey asked people to agree or disagree with this statement: “Introduce a wealth tax, to make the ultra-rich pay their fair share & fund public/active transport.” 65% of people agreed. As Hickey notes the survey reveals a stark generational divide with 80% of young people wanting wealth tax, congestion charges and/or pollution pricing to pay for improvements in public transport, walking and cycling, while less than a third of older respondents were keen on a wealth tax.

Treasury lukewarm on wealth tax

Sometimes I wonder if we grip onto wealth tax because it seems like the most overt way to express frustration at what many view as a growing and vastly unfair disparity, especially between generations. Treasury is actually a bit lukewarm on a wealth tax citing “a high level of avoidance and exemptions” and noting that it raises relatively little revenue. That note comes from a 2021 statement that was most concerned with the future and how we deal with the projected gap between expenditure and revenue that will grow significantly as the population ages. Tax expert Terry Baucher covered it in his latest podcast, transcribed here on interest.co.nz. 

Work on a plan to enshrine "tax principles" still underway

Treasury listed a range of options that all result in either introducing new taxes, increasing revenue from the existing tax system or broadening the tax base. In typically understated language, Treasury suggests it may not be “feasible or desirable” to address the revenue/expenditure gap caused by an ageing population within our current tax system, saying it may require “a more fundamental review of the structure and integrity of the tax system as a whole.” Last week, revenue minister David Parker confirmed that the government is continuing work on a plan to enshrine "tax principles" into law that officials would then assess the tax system against. Political parties could still individually decide how best to apply these. That’s probably not conducive to the fundamental review Treasury has lightly suggested we may require.

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A rare news item about The Bulletin

This month marks five years since the launch of The Bulletin. You will notice we’ve given it a birthday make-over. Supported by Z Energy, we are beyond proud to mark its fifth birthday by saying it remains a unique proposition within Aotearoa’s news media landscape. I am also excited to announce that from tomorrow, The Spinoff’s former deputy editor Catherine McGregor will be joining me as a contributor to The Bulletin. Catherine will write The Bulletin on Mondays and Fridays. I will write it Tuesday — Thursday and am staying close on the other days, picking up a new role as The Spinoff’s Head of Audience. Thank you to every single subscriber and reader. You are the reason Bulletin editors get out of bed to do this.

Outgoing children’s commissioner raises serious concerns about new system

As Stuff’s Bridie Witton reports, as many as eight children died last year at the hands of those supposed to take care of them, but Judge Frances Eivers wasn’t asked about them when she made her last appearance in front of MPs as the children’s commissioner. The government has dismantled the position and will replace it with a new board. It splits oversight of Oranga Tamariki between a new Independent Monitor and the Ombudsman. Eivers has been highly critical of the move and it was opposed by the ACT, Green, National and Māori parties. She will however sit on the new board. Eivers called for care and protection units to be closed. Her predecessor, Andrew Becroft, has previously described them as “prison-like”.

Five years of The Bulletin: a special Spinoff members-only event 

Spinoff Members have always been a big part of The Bulletin’s readership so I want to say thank you to them this morning. If you are a member, you should have received an invitation to mark the fifth birthday of The Bulletin with a live event featuring former Bulletin editor, now executive producer of TVNZ’s Q&A, Alex Braae, myself and Madeleine Chapman in conversation. If you're not a member, please consider becoming one or donating to The Spinoff so you can have access to events like this in the future or simply because you value what we do and want to make sure it remains freely accessible to all.

Round the boards: round two

In what I hope doesn’t turn into a regular spot, here’s another update on public sector boards and board members. Steve Maharey, the chair of Pharmac, Education NZ and ACC has retained the confidence of ministers after a recent column landed him in hot water. There is now a focus on another former Labour minister, Ruth Dyson. Dyson is deputy chairwoman of Fire and Emergency NZ and the Earthquake Commission and her tweets have been called out as not meeting standards of political impartiality. Dyson has admitted she has not read the code of conduct governing her position as a Crown entity board member. And lastly, broadcasting minister Willie Jackson has defended the cost of the now-halted TVNZ/RNZ merger and continued payment of board members and said he hoped that one day, “we might be able to roll that merger out.”

Click and collect

• Christopher Luxon says health communications staff “a good place to start” in public service cuts

• Senior government analyst accused of providing privileged information to the Chinese government

• Interesting read from a retired law professor for anyone who’s studied law and recalls torts (or deals with the law of torts everyday) — forestry slash can be the tort of nuisance

• "It's been a bit stressful obviously” — calm understatement from one pregnant woman whose drive to her birthing centre will take three hours because on ongoing road closures in the Coromandel

• Councillors unanimously agree to name a new street in Carterton Georgina Beyer Way

Got some feedback about The Bulletin, or anything in the news? Get in touch with me at thebulletin@thespinoff.co.nz.

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Right now on The Spinoff

Chris Schulz talks to a family who planned on moving to Christchurch, but have the Cook Strait and cancelled ferry services standing in their way. Can you say your product is handmade if you're just buying lollies and coating them in chocolate? Stewart Sowman-Lund investigates claims a Levin company has done just that. Duncan Greive wonders if New Zealand needs to regulate streaming services. Sam Brooks reports on another New Zealand mayor saying something they shouldn’t have. And we have ten thoughts from the hype of Tuesday's Harry Styles concert.

Sporting snippets

• The Black Ferns have won six Rugby World Cup titles but Google directs you to the All Blacks and their three titles when you search who has won the most Rugby World Cups. Inside the project to 'Correct the Internet' on sporting milestones

• The Sri Lankan cricket team have never won more than a single test in New Zealand but they have a strong incentive to do in the two-test series against the Black Caps starting today

• Meanwhile the Black Caps are “pitching in” on fundraising efforts for communities impacted by Cyclone Gabrielle

  

Remote work making having families easier 

Maybe we should have clocked this outcome a bit earlier but a new paper suggests remote working is making it easier for some people to become parents. And yes, on one level it’s as basic as it sounds, but the paper contains many other insights into the potential impact of the pandemic and remote working on fertility, family and marriage summarised here by The Atlantic’s Derek Thompson.