Dear Friend,

Last week, the Greens announced one of the most radical tax policies we've ever seen. While asset taxes have been floated before, having now worked through the finer detail of what the Greens want, it is clear that this proposed tax would hit (and hurt) far more families than the media would lead you to believe.

I know there is so much going on right now, but this would be so destructive to New Zealand's prosperity and it is an issue we simply cannot ignore.

The last time the Greens proposed a wealth tax, Labour's then leader Jacinda Ardern ruled it out. This time, Chris Hipkins is entertaining this radical tax grab.

I'm emailing all of our supporters like you who so you are aware how these changes might affect you. We need your support today so we can ensure Kiwis understand the real impact of an asset tax and how it will cost home owners and cripple small businesses owned by family trusts.

⚠️ Who this impacts ⚠️

>> Anyone with assets in a trust 🏡

While Marama Davidson and James Shaw are trying to say that their new tax will only impact the 'wealthy', their proposals will see each and every one of New Zealand's around 400,000 trusts paying a 1.5% asset tax from the first dollar of assets each and every year – even if it's the family home, family farm, or small business!

Trusts aren't necessarily the preserve of the wealthy. Many of us have legitimate purposes for a trust, such as for relationship or asset protection

Even worse, the Greens tax is on gross assets, not net assets held in trust. That means that a $1,000,000 home owned by a family trust would be liable for $15,000 in tax every year, even if it had a mortgage of $900,000!

>> Anyone with shares in a company 🏭

Despite already having one of the highest corporate tax rates in the OECD, James Shaw wants to hammer business with a hike in the company tax rate from 28% to 33%.

The Greens' proposal would would mean only Venezuela and a handful of African and South American countries would have higher rates. To put it mildly, this would significantly hit investment and lead to lower growth – making all Kiwis poorer.

Australia's 30% rate would suddenly become a lot more attractive.

>> Anyone earning wages or PAYE income👷

While the Greens have been quick to promote a proposal for a "Tax Free Threshold", in fact many New Zealanders would face higher tax bills under the Greens' proposals.

Make no mistake Friend, this proposal is about extracting more in tax. The tax free threshold is a classic political "bait and switch" – with Kiwis facing higher marginal tax rates as the cost of a political 'gift'. It would severely reduce incentives to work.

For those on the highest incomes – such as doctors and knowledge workers with the skills New Zealand desperately needs, the Greens want those earning $120,000 to $180,000 to pay a 39% rate while those earning over $180,000 will be forced to pay an eye-watering 45% tax rate.

>> Anyone with net total assets over $2 million 👋

As part of the package, the Greens want to force a 2.5% annual tax on all personally held net assets over $2 million.

Double taxation like this disincentivises wealth creation and encourages entrepreneurs to invest outside of New Zealand.

Killing the goose that lays the golden egg – a recipe for a poorer New Zealand

The Greens have badged all this up as their plan to 'End Poverty Together', but we all know you can't tax your way to prosperity.

Recent experience in France and Norway shows that introducing (or increasing) wealth taxes drives millionaires – who pay an awful lot of tax – abroad. This means that asset taxes can often result in less money for public services.

We must force Chris Hipkins to rule out these extreme measures

Make no mistake , the threat of these tax plans becoming reality is real. 

With the polls so close, and Chris Hipkins needing the Green Party (and the Māori Party) to stay in Government, do you trust him not to be strong-armed?

That's why we need Chris Hipkins to rule out these measures now – so the Greens can't argue that a narrow Labour/Green/Māori victory is a 'mandate' for these disructive policies. 

We need you on board,

Every dollar you donate will help us raise awareness of the impacts of these reckless policies and ensure that voters are armed with the facts before they go to cast their ballots.

Can we count on your support?

Thank you for your support.

Hon. Ruth Richardson Board Member New Zealand Taxpayers' Union

ps. Your donation will help us to stand up against radical policies like these and fight for a prosperous, low-tax New Zealand with efficient, accountable government.