'TRICKLE DOWN ECONOMICS' DOESN'T EXIST
10 DECEMBER 2014
FOR IMMEDIATE RELEASE
The key message of the OECD’s report on inequality, released today, is investment in education and is not a prescription for higher taxes, says the Taxpayers’ Union.
The Union’s Executive Director, Jordan Williams, reacting to the OECD report and interviews with Grant Robertson and Russel Norman on this morning’s Morning Report says:
"Grant Robertson and Russel Norman want to use the report as justification to tax high incomes more, even though the top 6% of income earners already pay 37% of everyone’s income tax. They are trying to use the OECD report to frame small efficient government and incentives to work as a bad thing.”
“We’re disappointed that Mr Robertson continues to refer to the made up economic theory of ‘trickle down economics’. Mr Robertson must know that no such economic theory exists. No economist has ever argued that in order to make a poor person richer you should make a rich person richer first. Economists have, however, argued that economic growth and freedom makes us all, rich or poor, better off."
“The biggest cost of living is people’s tax bills. Instead of wanting to solve inequality by cutting government waste and taxes at the low end, politicians immediately want to tax more so they can distribute it to constituencies."
The background to the oxymoronic ‘trickle-down economics’ argument Messrs Robertson and Norman referred to on radio this morning to is available in a piece by New Zealand Initiative Researcher Jenesa Jeram republished with permission.
“Mr Robertson is now shadow Minister of Finance. He should be focused on arguing real economic data, not taking on his own straw men arguments," concludes Mr Williams.
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NOTES TO EDITORS:
The New Zealand Taxpayers’ Union is an independent activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power. It’s here to fight government waste and make sure New Zealanders get value for money from their tax dollar.
The Taxpayers’ Union operates a 24 hour media line for comment on taxpayer issues. Representatives are available on (04) 282 0302.
High resolution images and logos are available on request or online at http://www.taxpayers.org.nz/resources