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 »

National Distribution Union media release
15 August 2011

Introducing a Financial Transactions Tax (FTT) and removing GST from food is needed to ease the tax burden on struggling families the National Distribution Union says.

NDU General Secretary Robert Reid says the union is backing a 40,000 signature petition calling for GST to be removed from food and the introduction of FTT which will be presented to Parliament tomorrow by organisers of the Tax Justice campaign.

“GST is an unfair tax that hits low income workers particularly hard when the rate of inflation is surging ahead of wage increases as it is at present,” says Mr Reid.

“Low paid workers pay proportionately more of their income in GST than the wealthy as most of their money is spent on basics like food and transport. The Government didn’t seem to think this was important when it lifted GST to 15 per cent last year.

“At the same time the richest people in the country were given massive tax hand outs which the taxpayer is funding through borrowing, making the situation for workers even more precarious.

Mr Reid says things have become very much skewed in favour of finance capital with government bailouts and privileges for that sector while workers’ wages and conditions are being constantly undermined by low wages, unemployment, anti-union legislation and cuts to social services.

“A FTT would move the policy emphasis back to rewarding the productive workers who do the old fashioned graft that keeps the economy ticking over,” he says.

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 »

• “If they can do it in Australia then we already have a model to follow.”

• “NO GST ON FOOD… GOODNESS… LET US FEED OUR KIDS… AND STOP STRANGLING THE PEOPLE WITH OVER TAXING….”

• “GST discriminates especially on those on lower incomes. I am a low income earner, finding it impossible to exist on what I earn. Why should low income earners be GST taxed to subsidise tax cuts for the rich? Children suffer the most. This is immoral and disgraceful.”

• “GST should be exempted from all food to ensure our young have a good start in life. Taxpayers money will be saved 10 fold in later years if health and children’s nutritional needs can be addressed early.”

• “It’s wrong, it’s unfair and it’s making those less well off unable to feed themselves or their families properly. If it can be done in the UK, there is no reason why it cannot be done here. Take GST off food.”

• “Tax financial speculation on food products and press other countries for a global regime to prevent food prices from artificial, unnecessary shocks.”

• “Food tax is punishing to the poor. As the global recession bites deeper more and more Kiwis are joining the ranks of the poor and struggling.. Do what’s right and fair – Remove GST on food.”

• “We urgently need a fairer tax system. At present, we continually hear from elements of the ruling political elite that the tax system should be changed to make it even more unjust. Take a look overseas at what is happening in Europe and elsewhere around the world. “Ordinary people” are no longer prepared to tolerate the lies and abuses of neo-liberalism. Get real!”

• “Time to go for the real thieves (speculators) who have shafted us for so long.”

• “It makes absolutely no sense to force the poorest percentile of our population to pay more tax to compensate for the tax cuts that the richest percentile has benefited from. We can expect that such measures will lead to increased poverty and as a result increased crime and destitution. Is that the sort of country we want to live in?”

• “Financial speculation on food items is obscene and grossly humanly unjust.”

• “Adopt a financial transactions tax (which would throw sand in the wheels of speculation first and foremost) and we could abolish the poor-gouging GST altogether.”

• “It is obscene that financial speculators are allowed to play with people’s lives by speculating on food worldwide. The effects of this activity are being increasingly felt globally. I request that the National Government remove the GST on food, as Australia does. I request in addition that the financial transactions of financial traders incur a tax from IRD, because at the moment traders are making money on financial transactions without paying their fair share towards the country’s running costs. It is a total anomaly that this has been allowed to continue for so long. This loophole must be closed forthwith, in order to force these traders to contribute as other citizens have to. It is entirely inappropriate that a powerful and often unseen elite are allowed to profit in this way at the expense of every other sector, with the additional abhorrence of forcing food and other commodity prices up so that they can profit freely with no consequences to their own pockets. The National Government must act decisively to root out this abhorrent practice from our society.”

• “The increase in GST affects those most who spend most of their income on food and their other daily needs – those with the least income. The tax breaks issued by the current government do not offset the increase in GST and the effect this increase has had on food prices. A real positive change, particularly for those thousands of New Zealanders with low income, would be lower food prices. No or considerably lower GST on food can achieve that. Have a look at the German model!”

• “Great campaign. I’m all for it, I don’t know how some people are surviving. I’m all for the equitable distribution of our resources, the gap between the rich and the poor is getting worse. I don’t understand why people are allowed to have so much money when our children are going hungry.”

• “Tax on food is outrageous.”

• “Financial speculation sucks money out of the real economy into a false economy from where it never returns. It is immoral that banks, financial institutions and speculators make record profits, billions upon billions of dollars whilst the hard working wage slaves in the real economy who generate real wealth face more and more hardship. The entire monetary and economic system needs a complete rethink, this is a great start. Such a small percentage will still leave plenty of profit for those that worship it, but will also enable the real economy top start functioning again.”

• “Bring on the Hone Heke Tax!!!”

• “Financial Transaction Taxes. Remove GST off everything! No Privatization of our assets!”

• “Stop taxing basic food consumption, start taxing the financial transactions of wealthy money-market manipulators. They are businesses making profits, they should pay the tax they’re due, not low-income families struggling to keep their children fed.”

• “Tax the super rich because it is not fair that the rich just get richer and the poor get poorer.”

If you would like to add your name to the Tax Justice petition which requests Parliament to 1) Remove GST from food; and 2) Tax financial speculation, click here.

Tax Justice media release
14 August 2011

40,000 signatures calling for GST to be removed from food and a tax placed on financial speculation instead will be presented to Parliament at 12noon on Tuesday 16 August.

The Tax Justice petition will be received on the steps of Parliament by Su’a William Sio, the Labour MP for Mangere, who will be presenting it to the House.

Russel Norman, Green Party co-leader, and Hone Harawira, Mana leader, have also confirmed their attendance at the petition handover.

“With round two of the Global Financial Crisis upon is, there’s more reason than ever to make changes to New Zealand’s unfair tax system,” says Vaughan Gunson, Tax Justice campaign coordinator.

“Taking GST off food would give immediate relief to ordinary New Zealanders struggling to pay the bills. While introducing a Financial Transaction Tax that targets the pariahs of the financial world would generate much needed government revenue,” says Gunson.

The organisations and individuals who have actively supported the Tax Justice campaign to date will be represented in a delegation on the steps of Parliament. Included in the delegation are: Aaron Edwards (Whangarei District Councilor), Alastair Duncan (Service & Food Workers Union), Ariana Paretutanganui-Tamati (Mana Movement), Kay Murray (Alliance Party co-leader), Mike Clark (Maritime Union of NZ), Peter Conway (Council of Trade Unions secretary), and Sheryl Cadman (National Distribution Union).

Vaughan Gunson, Tax Justice campaign coordinator, is available to speak to the media about the Tax Justice campaign prior to, during, and after the presentation of the petition. He can be contacted on 021-0415 082.

The MPs who will be receiving the petition, and members of the Tax Justice delegation, will be available to speak to the media on the steps of Parliament between 11.30am and 1pm.

A group “photo opportunity” for photographers and TV cameras will be organised at the conclusion of the formal presentation of the Tax Justice petition to the MPs.

For comment, contact:

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

Victor Billot
Tax Justice media spokesperson
021-482 219
victor@victorbillot.com

by Vaughan Gunson
Tax Justice campaign coordinator
vaughangunson@taxjustice.net
021-0415 082

There are two demands on the Tax Justice petition. One is to remove GST from food and give immediate relief at the supermarket to grassroots people. If we can win GST off food – an idea supported by a majority of New Zealanders – then we may be able to build the political momentum needed to get rid of GST all together. GST is a horrible regressive tax that hurts low and middle income people the most.

The second demand on the petition is to tax financial speculation. While we pay tax on our kai, filthy rich speculators pay zero tax on their wheeling and dealing. This is a gross injustice.

But the speculators aren’t just getting away with paying no tax, their activity on a global scale has contributed to the world financial crisis which is causing untold economic hardship for grassroots people worldwide.

And, it’s speculators who are responsible for driving up food prices through their speculative investment in food commodity markets. This is resulting in millions and millions of people around the world going hungry. It’s a crime against humanity.

The speculators, who profit at the expense of the rest of us, need to be chopped down. That’s the message of the latest Tax Justice cartoon.

The Tax Justice petition will be presented to Parliament in a few weeks time on Tuesday 16 August. The more signatures we have the stronger the message we’ll be giving to politicians and the media. We hope to reach 50,000 signatures.

Every effort to collect more signatures in these last weeks will help. Contact us now. Or download the petition here.

Post completed petition sheets to: Tax Justice, PO Box 13-685, Auckland 1061.

To sign the online version of the petition go to http://www.ipetitions.com/petition/taxjustice/

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

HELP LEND A HAND!

The Tax Justice petition will be presented to Parliament on Tuesday 16 August. The Labour MP for Mangere, Su’a William Sio, will be accepting the petition and presenting it to the House. That means we’ve only got a month left to push towards our goal of 50,000 signatures. We need to be busy.

A copy of the Tax Justice petition can be downloaded here. Please print it off and collect more signatures through your networks. If you want to be part of teams collecting signatures in the last weeks of the campaign contact us ASAP, email vaughangunson@taxjustice.org.nz or ph/txt 021-0415 082.

Post in completed petition sheets NOW

Completed petition sheets are being received nearly everyday from volunteers around the country. If you’ve got any completed petition sheets please send them in now. Post to:

Tax Justice
PO Box 13-685
Auckland 1061

Well positioned

With the Labour Party expected to unveil a Capital Gains Tax as one of its campaign policies, taxing the rich more and giving tax relief to grassroots New Zealanders looks set to be an election issue. Our demands to remove GST from all food (not just fresh fruit and vegetables) and tax financial speculation instead, fits entirely with this debate. The Tax Justice campaign is well positioned to help shift the tax debate leftwards (see our latest media release).

A broad coalition

We’ve been advocating a broad coalition of parliamentary parties and campaigning organisations that works together to achieve a radical change to New Zealand’s unjust tax system. Taking GST off food, which has broad popular support and could be done immediately, would undermine GST and create the political conditions for the eventual phasing out of this tax which hurts ordinary people most.

A Financial Transaction Tax applied to at least financial markets would confront head-on the big players in global capitalism today. Winning the popular debate and implementing such a tax in New Zealand can only be achieved by a broad coalition of forces working together. And most likely as part of a wider political revolt in this country fueled by grassroots anger at worsening economic austerity, and inspired by waves of revolt globally.

Because a Financial Transaction Tax targets the money flows of global capital, and because hyper-speculation is capitalism’s last ditch profit strategy, opposition of powerful forces will be fierce. The struggle for Financial Transaction Taxes, both within national borders and internationally, will require and encourage a Global Uniting of grassroots forces. A broad coalition for tax justice in New Zealand would be part of an international struggle.

There are political opportunities and new forces emerging in New Zealand today. Exciting times! We need to work broadly together inside and outside of Parliament to turn policies on paper into a new reality.

In solidarity,

Vaughan Gunson
Tax Justice campaign coordinator
vaughangunson@taxjustice.org.nz
021-0415 082