Economic Policy > Taxation
If the people prosper, the nation will prosper. Everything leading to a just prosperity must be supported, and everything undermining prosperity must be challenged.
New Conservative believes in a new, simple, fair, taxation system devoid of loopholes that can be exploited. Tax should meet the following expectations. It should be fair, easy to collect, hard to avoid and very predictable for the Government. The current system does not meet these requirements.
Preliminary studies indicate an Every Transaction Tax (ETT) of just 0.5% (or less) on every banking transaction (excluding internal transfers) would likely net as much as GST, and possibly income tax as well, nets now, with much lower collection costs, and an instant, no cost, increase in purchasing power of up to 10% for wage earners as GST is removed.
New Conservative would investigate a stepped introduction of ETT by removing GST first and, if the revenue target is met, then reducing or removing income taxes.
The ETT advantages are clear:
Tax avoidance should reduce as any unjust gain is only 0.5%
Banks would collect through current systems and pay government daily
It massively reduces workload on businesses and the IRD collecting and paying GST
Taxation is directly linked to consumption/spending
Anyone trading in New Zealand will pay the ETT, no international avoidance
Effective 5-10% wage increase for low income earners as GST is removed, and more if income tax can be reduced as well