Tax Justice media release
28 October 2011

“The Occupy Movement is protesting the injustice of the world’s 99% having to bear the costs of a financial crisis caused by an elite few,” says Vaughan Gunson, Tax Justice spokesperson.

“The best mechanism for making the super-rich 1% pay is a financial transaction tax, or Robin Hood Tax,” says Gunson.  “It’s very exciting to see that the global movement for this tax which targets banks, big corporates and financial speculators is growing.”

The Robin Hood Tax international day of action on Saturday 29 October is timed to put pressure on the leaders of the G20 before their summit meeting in Cannes on 3 November. In New Zealand, actions are being organised in Wellington, Auckland, and Christchurch.

“Tax Justice has been campaigning over the last year for financial speculation to be taxed. It’s criminal that the profits of speculators go untaxed, while ordinary New Zealanders are taxed every which way,” says Gunson.

The Tax Justice petition signed by 40,000 New Zealanders was presented to Parliament on 16 August. The petition calls for GST to be removed from food and a tax placed on financial speculation instead.

“Politicians in New Zealand need to respond to the global movement and start looking at how we can introduce a Robin Hood Tax in New Zealand,” says Gunson.

Tax Justice would like to see the parties of the left come together on tax policy. “A broad coalition that brings together left parties inside and outside of Parliament, along with unions and other grassroots organisations, could achieve a decisive shift towards a more just fairer tax system,” says Gunson.

“The beauty of financial transaction taxes is that they can target the super-rich who aren’t paying enough tax; it’s almost impossible to avoid; and modern technology makes it a simple and low cost form of tax collection,” says Gunson.

Tax Justice has produced a Fact Sheet on Financial Transactions Taxes and their feasibility for New Zealand. To download PDF click here.

For comment, contact:

Vaughan Gunson
Tax Justice spokesperson
021-0415 082
svpl@xtra.co.nz

or

Grant Brookes
Tax Justice spokesperson
021-0532 973
grant_brookes@paradise.net.nz

Grant Brookes will be speaking to the Wellington Occupy movement on the subject of a Robin Hood Tax at 1pm, Saturday 29 October, Civic Square.

Chopping down the speculators!

Tax Justice media release
18 August 2011

In the wake of the ongoing financial crisis, German Chancellor Angela Merkel and French President Nicolas Sarkozy are prioritising the introduction of a Financial Transaction Tax (FTT) in Europe (see Sarkozy, Merkel push new tax, 17 August 2011).

“New Zealand needs to get up to speed with the international debate about Financial Transaction Taxes,” says Vaughan Gunson, Tax Justice campaign coordinator.

“FTTs are the best mechanism for forcing financial speculators to pay tax, we need to be looking at them seriously for our financial markets.”

Mr Gunson says it’s criminal that super-rich speculators are getting away with paying no tax on their profits, while ordinary Kiwis are paying 15% GST on their food.

Tax Justice has produced a Fact Sheet on Financial Transactions Taxes and their feasibility for New Zealand. To download PDF click here.

On Tuesday this week, Tax Justice presented 40,000 signatures to Parliament calling for GST to be removed from food and a tax placed on financial speculation. The petition was received by MPs from Labour, Greens, Mana, and the Maori Party.

The latest Tax Justice cartoon, “Chopping down the speculators”, was inspired by Hone Harawira and Mana’s branding of a FTT as the “Hone Heke Tax”.

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Produced by Vaughan Gunson, Tax Justice campaign coordinator

This is a working document, please make suggestions to it by emailing vaughangunson@taxjustice.net

Last updated 18 August 2011.

To download PDF version click here.

A hyper-financialised “bubble economy”

1. In 2008, prior to the global financial crisis, world trade in various financial commodities was 74 times higher than global GDP. Daily turnover for global currency trade as of April 2010 was $4 trillion ($1,460 trillion a year). This speculative activity is destablising the world economy and creating speculative bubbles that ultimately hurt grassroots people.

2. The unprecedented level of financial speculation represents the desire of the world’s super-rich to continue reaping super-profits. To achieve this, governments worldwide have removed all barriers to financial speculation and encouraged a supply of cheap credit by banks. A giant financial casino has been created, where everything that fluctuates in price has attracted the speculators.

3. Since 1984 a priority of both Labour and National governments has been deregulation of the financial sector. This has opened up NZ’s financial markets to international and local speculators, resulting in price volatility and inevitable cycles of boom and bust.

4. The Kiwi dollar is one of the ten most traded currencies in the world. Global speculators have created a highly volatile market. It’s a South Pacific roulette table for the world’s high rollers.

5. Many mainstream economists and politicians around the world have recognized that financial speculation is out of control and needs to be curbed.

Taxing the speculators

6. Profits from financial speculation are currently not directly taxed by the NZ government. This is a yawning gap which must be closed to bring fairness to NZ’s tax system.

7. The only mechanism that could make speculators pay tax, particularly overseas ones, is a tax on the financial transaction itself. There is growing momentum worldwide for Financial Transaction Taxes (FTTs) to be introduced to a full range of financial markets, not just currency markets as proposed by James Tobin in 1972 (the Tobin Tax).

8. The percentage rates that are being talked about internationally for Financial Transaction Taxes are very small, ranging from 1% to as low as 0.05%. There’s a growing consensus amongst tax researchers that a FTT would work best if different rates were set for different financial markets and types of transactions.
Read the rest of this entry »

Vaughan Gunson, Tax Justice campaign coordinator, was interviewed on Newstalk ZB by Larry Williams. The questioning focused on the introduction of a Financial Transaction Tax to cover the revenue lost to government from removing GST off food. To listen click here. The interview starts roughly one third into the radio segment.

The presentation of the Tax Justice petition to Parliament will go ahead today at 12 noon, despite the polar outbreak causing a few headaches for Tax Justice organisers.

Tax Justice organisers from as far afield as Whangarei and Dunedin were to fly into Wellington today to participate in the hand-over of 40,000 signatures on the steps of Parliament.

But petition organisers say their campaign will not be put on ice. Local Tax Justice campaigners from Wellington will step up to coordinate the presentation, regardless of local weather conditions, says Tax Justice campaign coordinator Vaughan Gunson, who was unable to fly into Wellington yesterday or today. Read the rest of this entry »

A petition signed by 40 000 New Zealanders asking for GST to be removed from food will be presented at Parliament at noon tomorrow Tuesday 16 August 2011.

The petition also requests that a financial transactions tax – sometimes referred to as a “Robin Hood Tax” or “Hone Heke Tax” – be introduced, which would cover the cost of removing GST from food.

Tax Justice campaign spokesperson and Alliance Party co-leader Kay Murray says the petition has struck a chord with New Zealanders.

“The majority of New Zealander’s are struggling with stagnant wages but hefty increases in the cost of living. Removing GST from food would help the majority of people in New Zealand.” Read the rest of this entry »

The Maritime Union of New Zealand will be among official campaign supporters attending the handover of the Tax Justice petition at Parliament Buildings tomorrow Tuesday 16 August 2011.

The Tax Justice campaign has collected nearly 40 000 signatures for its petition to remove GST from food and introduce a Financial Transactions Tax (FTT).

Maritime Union General Secretary Joe Fleetwood says the union was the first to officially back the Tax Justice campaign, but has been joined by several other major unions.

He says the goal of taking GST off food is a urgent necessity for the wellbeing of New Zealand workers and families.

Read the rest of this entry »

Tax Justice media release
14 July 2011

“A Capital Gains Tax is a step towards making the rich pay the tax they should, but it won’t fix the rot,” says Vaughan Gunson, Tax Justice campaign coordinator.

“While capital gains taxes are very common around the world,” says Gunson, “they’re also considered quite easy to avoid.”

Gareth Morgan, while in favour of an CGT for New Zealand, admits that “Tax dodging on capital gains taxes is simple” (see Capital gains tax best way to tackle rot, 14 July 2011).

“Easy avoidance of capital gains taxes is one reason international campaigners for tax justice are promoting a Financial Transaction Tax (FTT),” says Gunson. “That’s where the real buzz is.”

The internationally coordinated Robin Hood Tax campaign is doing a lot to promote the idea of a global FTT. While in New Zealand the Mana Party is calling for a 1% FTT, which they’ve branded the “Hone Heke Tax”.

Tax Justice is advocating a Financial Transaction Tax, because it’s the best way to tax international and indigenous financial speculators who currently pay zero tax on their trading.

Mr Gunson says the pros of a Financial Transaction Tax are that it’s difficult for the rich to avoid, it’s low cost to implement, and it’s very progressive.

“It’s only the rich who speculate in financial markets or have elaborate schemes for moving money around to avoid paying tax,” says Gunson. “They’re the ones that a well designed Financial Transaction Tax could net billions of extra tax revenue from.”

Tax Justice has been collecting signatures for a petition that requests Parliament to remove GST from all food and tax financial speculation instead. The petition, which has close to 40,000 signatures, will be presented to the Labour MP for Mangere, Su’a William Sio, on Tuesday 16 August.

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Tax Justice media release
13 July 2011

Tax Justice welcomes the national debate in response to speculation that Labour will campaign for a Capital Gains Tax.

“The rich, and especially the super-rich, have not been paying the tax they should,” says Vaughan Gunson, Tax Justice campaign coordinator.

“A Capital Gains Tax is one mechanism for taxing the rich that needs to be introduced,” says Gunson, “but we also need a Financial Transaction Tax, which could net billions from currently untaxed financial speculation.”

“The advantages of a Financial Transaction Tax are that it’s difficult for the super-rich to avoid, it’s low cost to implement, and it’s very progressive, because it’s only the very rich who move their money around speculating in financial markets,” says Gunson.

The Tax Justice campaign has been collecting signatures for a petition that requests Parliament to remove GST from all food and tax financial speculation instead.

The petition will be presented to the Labour MP for Mangere, Su’a William Sio, on Tuesday 16 August.

“After we’ve presented the Tax Justice petition to Parliament, we’re going to approach a range of organisations and political parties about forming a coalition that campaigns for more taxes on the rich and the phasing out of GST.”

Mr Gunson says the fight for tax justice in this country would be best served by parliamentary parties on the left working together with unions and other campaigning organisations to build the political momentum needed to radically change New Zealand’s unjust tax system.

“We know from collecting signatures on the street that people want to see the tax burden shifted off themselves and onto the super-rich,” says Gunson.

“That’s consistent with the mood we’re seeing overseas, with ordinary people in numerous countries demanding that the super-rich pay more tax,” says Gunson. “This global sentiment is likely to grow and put further pressure on politicians like John Key, who favour tax breaks for the rich.”

For more comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Kay Murray
Tax Justice spokesperson and Alliance Party co-leader
021-1672 843
ksimmondsmurray@xtra.co.nz

Tax Justice media release
21 June 2011

The Tax Justice campaign supports tomorrow’s (22 June) Global Day of Action for a Financial Transaction Tax coordinated by Oxfam in Britain.

“Momentum is building worldwide for financial transaction taxes that target the banks, speculators and big corporates,” says Vaughan Gunson, New Zealand’s Tax Justice campaign coordinator.

“The international money men who caused the global financial crisis must be made to pay the bill,” says Gunson. “Financial transaction taxes are the best way to make that happen.”

It’s widely accepted that financial transaction taxes levied internationally could raise hundreds of billions of dollars, which could then be used to fund programmes that help the world’s poorest. (For more information on financial transaction taxes and the Global Day of Action go to http://www.makefinancework.org/home-english/financial-transaction-tax/)

The Tax Justice campaign in New Zealand is calling on the government to seriously look at how a FTT could be applied here.

“There’s an urgent need to broaden the tax base in this country to maintain public services, protect our people from the effects of the economic crisis, and re-build Christchurch,” says Gunson,

“The beauty of a FTT is that it would not squeeze more tax out of people already paying their fair share.”

“It is a very progressive tax, because those who end up paying the most tax would be those involved in high frequency trading in New Zealand’s financial markets – these mostly overseas speculators are currently paying no tax to the government,” says Gunson.

Mr Gunson says a small percentage tax on the money flows of financial speculators operating in New Zealand markets would raise significant government revenue.

“Here’s a solution to the government’s debt problem that it would be irresponsible for politicians to ignore,” says Gunson.

On Wednesday, Tax Justice supporters will be out on the streets continuing to collect signatures for a petition calling on Parliament to: 1. Remove GST from food; and 2. Tax financial speculation.

40,000 signatures have so far been collected for the Tax Justice petition, which will be presented to Parliament on Tuesday 16 August. Su’a William Sio, Labour MP for Mangere, will be receiving the petition and presenting it to the House.

For more information on the campaign go to www.nogstonfood.org

For comment, contact:

Vaughan Gunson
Tax Justice campaign coordinator
021-0415 082
svpl@xtra.co.nz

Kay Murray
Tax Justice spokesperson and Alliance Party co-leader
021-1672 843
ksimmondsmurray@xtra.co.nz