Is an inherited wealth tax something Kiwis can get behind?

Author
Newstalk ZB,
Publish Date
Tue, 4 Aug 2020, 3:20PM
(Photo / Getty)

Is an inherited wealth tax something Kiwis can get behind?

Author
Newstalk ZB,
Publish Date
Tue, 4 Aug 2020, 3:20PM

A Victoria University tax lecturer thinks the country needs a tax on inherited wealth.

Tax is hot on the agenda leading up to the election, with parties beginning to lay out their policies ahead of September 19th.

Victoria University’s Jonathan Barrett thinks that an inherited wealth tax is something New Zealand should adopt, and the country needs to get ahead of what will be an issue.

He told Heather du Plessis-Allan that during this decade, there will be a massive transfer of intergenerational wealth to baby boomers and down to Gen X and millennials.

“One estimate puts it just for the wealthiest people at US$15 trillion coming across in the 2020s, so it’s an opportunity I think the Government needs to look at.”

Barrett does not think it would be more palatable than a Capital Gains Tax, but this would be a second-best attempt of bolstering up the country’s system.

He expects it would raise up to $1 billion for New Zealand if we adopt a similar method as Ireland.