A political commentator is slamming Green MP Chlöe Swarbrick's claim a wealth tax could fix poverty.
It comes after Prime Minister Jacinda Ardern was forced to clarify her stance on a wealth tax on Monday. Speaking with AM on Monday morning, Ardern wouldn't rule out a wealth tax despite previously promising not to introduce one.
Her comments were met with swift backlash from National and ACT and the Prime Minister was forced to clarify yesterday afternoon that the Government has "no intention" to introduce a wealth tax "this term".
But the Government is currently investigating the amount of tax New Zealand's wealthiest people pay with Revenue Minister David Parker hinting a wealth tax could be the solution last week.
Swarbrick and ACT leader David Seymour joined AM to discuss wealth tax on Tuesday.
During the conversation, Swarbrick, who is in favour of a wealth tax, suggested if it was implemented New Zealand could eradicate poverty.
"Based on the data that we had available in 2020 this would apply to the top six percent wealthiest New Zealanders in this country. So to give you a really concrete example, if you have $2.5 million worth of assets, net assets so that's without mortgages, without any debt as a couple, congratulations firstly you're in the top six percent in the country but secondly, that would apply to you as an individual.
"So if you take it as an individual that's $1.25 million worth of net worth and then that only applies to that $250,000. One percent of that is $2500. For that $2500 contributed to the tax pool in this country, we can eradicate poverty," Swarbrick said.
But her claim is being rubbished by political commentator and former ACT press secretary, Trish Sherson, who called it "idealistic, student politics".
Sherson joined AM on Tuesday alongside lawyer Chris Patterson to discuss the idea of a wealth tax.
She told AM the Government taking more money won't fix inequality and instead, it should focus on getting a good return on its investments.
"There is no problem with the amount of tax revenue this Government is bringing in, it's the highest revenue ever. This Government is also the biggest spender. The problem is with the quality of spending. So if this Government wants to go and say, 'Look we need to tax more,' what I would like to see is proof of return on investment for the spending that they're already doing.
"Before we get into the great idealistic, student politics debate that Chlöe Swarbrick wants to have about wouldn't it be great to tax wealthy people because we can fix inequality if we do that... I mean I have never heard anything so ridiculous," she said.
But Patterson had a different view, saying New Zealand's current tax system is really unfair.
"I get offended by the fact that you have a Countdown checkout operator who pays more in tax than some New Zealanders who are living in mansions.
"We all share in the benefits of this great country we live in and we've all got to contribute in one way or another. And there are aspects of our tax system that do need to be looked at."
Watch the full interview above.
