It is time for those who earn more to pay more

I DEPLORE the sentiments expressed in Gerrard Eckhoff’s jeremiad (ODT, 25.9.20), ‘‘When is enough tax enough’’, as they are solipsistic and superficial.

The role of taxes is twofold: to modify behaviour and to finance public services. In New Zealand, this first function has delivered, reducing smoking rates dramatically. However the public services have been chronically underfunded with a rundown of health, education, social services, transport and others.

One result of this is that we have imperilled our future: 151,700 New Zealand children are living in material poverty. This is the result of our tax impost failing to fund necessary expenditure, largely because New Zealand, almost uniquely among our peer countries, has no capital gains tax.

As a retired farmer, Mr Eckhoff has profited from this handsomely. An average New Zealand farm of 252ha, worth $25,657 per hectare, is valued at $6,465,564. Farms appreciate in the long term at 7%9% per annum (37% between August 2016August 2020). Thus the average farm increases in value $580,608 per annum taxfree as a result of the largesse of the New Zealand tax system.

Most farmers become farmers as a result of primogeniture and also benefit from the absence of inheritance tax.

Mr Eckhoff laments that 12% of

New Zealanders pay 48% of the tax.

But he fails to disclose a mere 10% of New Zealanders own 53% of the wealth.

If New Zealand is to prosper, Mr Eckhoff should follow the example of Warren Buffet and recognise he is not paying his share of tax.

As a Peter, I will support political parties that increase tax on Peter to pay Paul.

Ian Breeze

Broad Bay

Reunion

Lions Club of Green Island: 50th Anniversary, April 17, 2021. All past members encouraged to attend. Contact Bob Fairhurst 027 4282557 or fairbob99@gmail.com for details.