Alliance Party agrees with need for Hone Heke to meet Robin Hood

Alliance Party Co-Leader Kay Murray and GST off Food Tax Justice campaign co-organiser Kay Murray says the new Mana Party’s Hone Heke financial transactions tax (FTT) is a great idea.

Ms Murray commented today in the wake of Mr Harawira’s launching of his new Mana Party which aims to make the Hone Heke FTT tax a central element of its platform at this year’s election.

“The Alliance Party welcomes this move by Hone to endorse a long standing policy of our party. The Alliance and the GST off Food campaign has long advocated for a Robin Hood financial transactions tax as an alternative to GST. After all, a worldwide movement to tax financial transactions Robin Hood style is gaining momentum, particularly in Europe. US economist Jeffrey Sachs last year endorsed the idea as have other eminent economists and anti-capitalist campaigners,” said Ms Murray.

A Robin Hood or Hone Heke style financial transactions tax has the potential to draw in a lot of revenue because it captures financial speculation. Amazingly, financial services are currently not subject to GST, a decision made by the Fourth Labour Government of which current Labour leader Phil Goff was a member.

“An FTT would take the tax burden off medium and low income workers who are struggling to pay their bills and instead place it on the super wealthy who constantly move their money around in search of greater profits and consequently cause enormous damage to the economy as a whole,” added Ms Murray.

The Alliance believes that, for New Zealand, a very small financial transactions tax is the perfect alternative to GST on food as a means of making food more affordable. An FTT levied at for example 0.05% instead of GST on food at 15% would mean a weekly shop immediately becomes 14.95% cheaper - a saving of $29.90 on a $200 food bill.

“John Key and Bill English should instead of telling us all to tighten our belts look at implementing fairer taxation measures such as a Robin Hood/ Hone Heke tax to stop the wealthy freeloaders and make sure everyone pays their way,” said Ms Murray.