Q+A with Jack Tame Expert on capital gains tax fairness, pitfalls of wealth tax
12 snips
Oct 4, 2025 Michael Keen, former Deputy Director of the Fiscal Affairs Department at the IMF, discusses crucial tax issues in New Zealand. He advocates for a comprehensive Capital Gains Tax, arguing it promotes equity and aligns with income tax principles. Keen praises New Zealand's GST system while cautioning against high corporate tax rates that could hinder productivity. He also explores the practical challenges of wealth taxes and emphasizes the need for fair tax systems that address inequality.
AI Snips
Chapters
Transcript
Episode notes
Core Principles Of Good Tax Policy
- A good tax system minimises economic distortions while reflecting society's view of fairness.
- It should also be reasonably simple and stable so people can plan investments.
Fairness Extends Beyond Income
- Fairness debates focus first on income tax progressivity but also on taxing wealth and inheritances.
- New Zealand broadly accepts a comprehensive GST, unlike many countries that carve out essentials.
Leverage GST To Raise Revenue
- Use New Zealand's broad GST as an anchor for revenue increases by adjusting the rate.
- Moving to European VAT levels could raise around four to five percentage points of GDP.