Crumbs From The Property Speculator’s Table

green-party

Wed Aug 30 2023 12:00:00 GMT+1200 (New Zealand Standard Time)

Crumbs From The Property Speculator’s Table

Wednesday, 30 August 2023, 12:25 pm
Press Release: Green Party

High-income property speculators will be the biggest winners from a National Party tax plan that will send house prices and rents through the roof, and turbo-charge inequality.

People on low and middle incomes will be much better off under the Green Party’s plan:

• A retired couple who will be $13 a week better off under National, would be $32 per week off under the Green Party’s plan
• A family with two children at primary school and a combined income of $120k would be $50 better off per week under National’s plan, and be $188 better off per week under the Green Party plan.
• Students who get nothing under National’s plan would get support of $385 a week under the Green Party’s plan

“National’s plan is a cynical ploy to do the absolute least for middle income earners in order to get away with tax cuts for the wealthiest few,” says co-leader of the Green Party, James Shaw.

“National has shown yet again that they don’t care at all about those with the least. Under National’s plan, people on the lowest incomes would miss out while high-income property speculators can continue to line their pockets. There are not even crumbs in this policy for students and people on benefits.

“National’s plan includes enormous tax cuts for people who play the property market, which we know drives house prices higher and squeezes first home buyers.

“The plan to roll back the bright line test to two years from 10 years and reverse the removal of landlords’ ability to deduct interest costs from their tax bill is a blatant handout for property speculators. It is ripping money away from everyone else in order to support the wealthiest few, and will be the worst possible news for first home buyers who want to be able to buy a place to put down roots.

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“The Green Party is clear that we must urgently stop handouts to property speculators so we can support everyone.

“There is an inherent cruelty baked into National’s plan. They are providing no additional support for beneficiaries, while giving people on high incomes more money each week. Not only that but they want to double the price of public transport for people on low incomes or with a disability to help pay for tax cuts that benefit high income people the most.

“National also cannot say with any certainty what crucial public spending they will cut to pay for their plan. This is pie in the sky stuff, unlike the Green Party’s costed solution of a Wealth Tax.

“People struggling to make ends meet will be much better off under the Green Party’s plan.

“Under our plan, everyone, whether in work or not, would have an income that covers life’s essentials; a warm, dry and affordable place to live that is powered by cheap, clean energy; and access to free dental care in communities where people and nature thrive,” says James Shaw.

Notes to Editors

Below is a comparison between the Green Party’s plan and the National Party’s plan using the examples in the National Party’s policy document:

Nathan – café worker

• National says Nathan will be better off by $20 a fortnight (or $10 a week)
• Nathan is an 18-year-old school leaver in Whangārei, taking a year off study to work full-time. Nathan works 40 hours per week on minimum wage in a local café.
• Under the Green Party’s plan, Nathan will be $18 better off per week or $36 better off per fortnight – 80% more under our plan
• Under the Green Party’s plan, Nathan will also get $385 a week when he starts studying
• National continues to ignore students and push people like Nathan into low wage work, rather than supporting them to live a decent life while continuing their education.

Ben and Tabitha – professional couple

• Each earn $150k
• Under National’s plan they will get $20 each per week
• Under the Green Party’s plan they will pay $26 more per week in tax
• Ben and Tabitha are not the squeezed middle – Ben and Tabitha are very high income earners, and the National Party is giving them more tax cuts than Nathan.

Simon - single parent

• Earns 80k a year, and has two children
• $45 better off a week under National, compared with $195 better off a week with the Green Party’s plan ($171 from Working for Families increases and $24 from reducing tax).

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