Time for a Wealth Tax
Helping billionaires contribute their fair share.
Fly away on your big space penis
Stash all your money in a bank on Venus
They’re the best, and no one is about them
Billionaires are perfect, and I love them
Song: The Late Show with Stephen Colbert.
The NBR's annual rich list reported that our wealthiest 150 people are collectively worth $129 billion, up from $102b last year. Last year, New Zealand had 18 billionaires; now there are 26.
Despite our economy resembling a certain parrot in a famous comedic sketch, and all the hardship in our community, with the government cutting social services and delivering austerity, a handful of Kiwis are making out like bandits.
The net worth of those on the list increased by $27b in just one year; imagine what could be done with that money instead of making the super-rich even wealthier. You could fund all the medicines we need and train and hire all the medical staff required, while paying them a decent wage so they don’t feel compelled to move to Australia to get ahead.
There are so many ways that money could be used to better serve us all than leaving it in the hands of a few who don’t even need it.
Let’s hear from Ms Swarbrick, who has a few views on the matter:
What are the super-rich going to do with another billion? Build a second helipad, buy another sports team, build a fourth swimming pool, or trade in the wife for a newer model - hmm, that one might be a bit pricey. You did get a good exit agreement in place, right?
This is where the paywall should have appeared in today’s newsletter, but I hate writing something people can’t read. If at all possible, I’d prefer to attract subscribers without locking out those who cannot afford it. If you can chip in a few bucks to subscribe to Nick’s Kōrero, it would be greatly appreciated. Ahh, the naivety of a leftie, eh?
A one-off haircut for billionaires to do their bit is one thing, but a better solution would be the Greens' Wealth Tax, which they indicated last year as being a “2.5% tax on net assets, such as property and shares, over an individual threshold of $2m (or $4m for couples).”
A tax that would not be paid by anyone with net assets below the limit, but would have resulted in those on the rich list paying $3.2b between them, which, quite frankly, they wouldn’t miss, and would allow the government to invest that money in infrastructure and services we all need.
But what about the poor billionaires, I hear you cry, don’t they have the right to deserve the fruit of their labour? A turn of phrase obviously; no one becomes a billionaire doing actual labour.
Plastic Fantastic
Zuru founders Nick and Mat Mowbray are still top of the list, with an estimated net worth of $20 billion.
Depending on your perspective, it is either a real success story or a couple of guys who got rich by using Chinese labour to sell plastic junk to Americans. Those rapid-fill water balloons, and then there are the plastic blocks, which are remarkably similar to a well-known Scandinavian brand but without any pesky trademarks.
They’ve done well for themselves and taken full advantage of the system available, but given the stuff they produce, you’d have to say their impact on the planet is hardly worth celebrating.
Nick Mowbray spends his time tweeting poorly thought-out libertarian nonsense, slagging off anyone to the left of the ACT Party, and kissing Elon Musk’s arse; the last thing this man needs is another billion dollars to stroke his ego. He’s already a legend in his own mind.
Much of it is utter garbage; it’s absurd to claim that 85% on the left have never worked in the private sector. Honestly, given the utterances they issue, you wonder how these people are respected by anyone other than out of sycophantic self-preservation.
That was a mild example; how about this one highlighted by David Farrier:
Much of Nick’s vitriol is targeted at the left, and last week, he posted this:
Yes, Nick, there is; it’s a Capital Gains Tax, but wait until you hear about the Wealth Tax from the Greens, which I imagine many Labour supporters would also like to see.
Maybe I’m placing an unrealistic emphasis on my own values, but I respect those who use their wealth to help others, some even calling for the wealthy like themselves to pay more tax, more than those who seek more and more for their own benefit.
I was moved this morning to read an article reporting that Labour has received the largest election-year donation, $219,178, from the estate of Murray Jones, an Otago mountain climber who died last December. Someone who has left money to help others, unlike Nick Mowbray, who is one of the top donors to the ACT party and clearly has no one else’s interests at heart but his own.
The Rocket Man
Peter Beck’s wealth increased by $10b in a year. The Kiwi lad who dreamed of going to space sold out to provide technology to the US military, and business is booming.
Yes, he might have a knighthood and look a bit like a hobbit, but if you’re a Middle Eastern shepherd tending your flock by night, that rapidly growing light on the horizon might have utilised technology from Peter’s rocket laboratory and have your name on it.
This guy is mega-rich, having turned his local business into a U.S.-headquartered public company which is now a significant partner to the US military; was it really necessary or appropriate to give him a knighthood?
To be fair, Beck is not the only billionaire on the list to have a knighthood; Rod Drury, who is in the top ten, received one at the start of this year. It’s so prestigious, with all the best people; don’t you know?
Mind you, our wealthiest are doing rather modestly compared with the announcement of the world’s first trillionaire a few days ago. I posted:
Nothing says capitalism is no longer fit for purpose more than Elon Musk becoming a trillionaire; it’s obscene.
Dianne commented, “Totally obscene; look how many people in the world that could feed, not to mention affordable housing. He wouldn’t do any of that for humanity, though, would he?”
Nickie posted an image that you might have seen doing the rounds:
Phil said, “And the media cheer him on like gushing, infatuated schoolchildren. Sickening.”
Well, not quite all the media; this is what Jonathan Pie had to say on the matter:
People like Nick Mowbray and Elon Musk claim that the left wants nobody to be rich; that’s not true at all. As they say, we want nobody to be poor, in the sense of lacking the basics of life in a country of great wealth.
I’m not advocating communism or the guillotine, but rather that those with immense wealth pay a reasonable amount in tax while remaining incredibly wealthy, so society can benefit. It’s not that much to ask, is it? If you’ve got more than you could ever need, why would you not want to help those who lack what they need?
The argument is always the same: we can’t introduce a wealth tax, or all the billionaires will leave. It’s the same argument used around the world as more and more countries grapple with extreme inequality. The truth is that few billionaires actually do leave, and the revenue generated is more than enough to offset any loss from those who do depart.
We need to be brave and implement a badly needed policy, accepting that we may have to wave goodbye to a few selfish pricks who cannot bear the thought of helping others and are determined to die with every last cent of their fortune intact.
The reality is that billionaires don’t choose to live here because of our tax regime; they are here for family ties, because it’s a great place to raise a family, or because it is safer than most of the world.
So let’s elect a government that will bite the bullet and introduce a Wealth Tax on billionaires to make things a little more equal.
Have a good Tuesday, all you lovely people.
Ngā mihi,
Nick.
To end today, here’s Stephen Colbert showing you why he was cancelled, along with Alan Cumming singing “Billionaires Are Actually Good.”
I don't think a wealth tax would drive our billionaires overseas (we should be so lucky). Foreign billionaires are queueing up to come here. But they'll be sure to send their wealth overseas...
I agree Nick, a wealth tax would be beneficial! Though we also need to look at the tax system as a whole too, as recent research shows the wealthy in NZ are paying around 10% in tax, while the rest of us pay considerably more as "ordinary kiwis". Perhaps more people need to understand what tax is for. I like the MMT (Modern Montery Theory) people's view one of those principles is to ensure we don't get the huge disparity we're seeing now.