Te Pāti Māori has proposed a bold tax policy which would include a tax-free threshold of $30,000 paid for by an assortment of new taxes, including a wealth tax.
The party says a "broken tax system" in New Zealand has "fuelled extreme wealth inequality that is only getting worse", with ordinary Kiwis "subsidising the lavish lifestyles of the rich".
"We must shift the tax burden from the poor to the wealthy," the party's policy document says. "It is time to eliminate poverty and restore fairness and economic justice in Aotearoa."
The plan to do that includes adjusting income tax rates to deliver tax cuts to 90 percent of New Zealanders, which it estimates will cost $13.7 billion.
For any income of $30,000 or less, no tax would be paid under Te Pāti Māori's policy. There would be a 15 percent tax rate on income between $30,000 and $60,000, 33 percent on income between $60,000 and $90,000, 39 percent between $90,000 and $180,000, 42 percent on income between $180,000 and $300,000 and then 48 percent on anything more.
The party says this means a New Zealander earning $30,000 will pay no tax and receive an additional $82 per week or $4270 a year. Someone on $60,000 will get an extra $125 per week or $6520 a year. A Kiwi earning $90,000 will receive an extra $119 per week or $6220 a year.
Te Pāti Māori continues to advocate for GST being removed from food alongside regulations to limit the ability of supermarkets to hike prices. This policy, which would cost $3.4 billion, is expected to allow families to buy on average "seven weeks of free food per year".
So how does the party plan to pay for it?
Te Pāti Māori says it doesn't accept that assets should be untaxed in New Zealand, so would introduce a net wealth tax bringing in $23 billion.
For any net wealth over $2 million, a 2 percent tax would apply. This increases to 4 percent for net wealth over $5 million and then 8 percent over $10 million.
"These rates will be less mortgage and other debts owing and will be for individuals and the combined net wealth of couples. Set at these rates, the net wealth tax will not affect most family homes or retirement savings. The tax will be payable annually and will capture capital gains accrued."
Other new taxes proposed include an Overseas Financial Transfer tax of 2 percent. This would be for overseas companies generating profits by providing services in New Zealand and then sending the profit overseas.
"For example, banks made approximately $7 billion last year and transferred this profit to their Australian shareholders. This will also capture multinational corporations like Facebook, Google and Amazon."
This would be on top of the company tax rate which would be moved from 28 percent to 33 percent.
An undeveloped land tax would be introduced to stop land banking by developers. This would be payable on all land that hasn't begun being developed within four years of purchase.
"The value to be taxed will be calculated at the current market value of the land less the original purchase price of the land, the difference being the increase in the value of the land. The tax rate will be 33 percent of the increased land value."
There would be an exemption for Māori freehold and customary land, "recognising the ongoing barriers to the development of Māori land and that this policy is targeted at landbanking".
"We will establish a finanical reporting framework that captures and measures all land transactions and valuations to ensure they are appropriately taxed."
The party also plans a vacant house tax.
"To stop investors from leaving dwellings empty for a long time, Te Pāti Māori will implement a vacant house tax which will be payable on all properties that do not have a tenant after a six-month period.
"The value will be calculated as the current market value of the property including land and buildings less the purchased price. The tax rate will be 33 percent of the market value."
There would be a $500 million investment into more resources for the Serious Fraud Office and Inland Revenue to address tax evasion. The party says $7 billion is lost to tax evasion every year. It has included that $7 billion in its costing. The figure comes from an estimate of the issue by a tax academic in a news interview.
"Our tax system is doing exactly what it was designed to do: take money from the poor and give it to the rich" said Te Pāti Māori co-leader Rawiri Waititi.
"The richest 10 percent now own half the wealth in this country, while the poorest half owns a mere 2 percent. On top of that, average people in Aotearoa are paying 20.2 percent in tax while the wealthy only pay 9.4 percent. It's time we rectified this imbalance."
The Labour Party is yet to release its tax policy but leader Chris Hipkins has ruled out introducing a wealth or capital gains tax.
The Greens want an 'Income Guarantee', which will cost $11b and includes a tax-free threshold of $10,000, further adjustments to tax rates resulting in anyone earning under $125,000 receiving a tax cut, a replacement to the Jobseeker benefit and Working For Families, and payments to all tertiary students.
To pay for it, the Greens proposed a wealth tax on net wealth over $2 million for individuals and $4 million for couples. A trust tax of 1.5 percent would be introduced, while the corporate tax rate would be hiked from 28 percent to 33 percent. A new top income tax rate of 45 percent would be applied to any income over $180,000.
