Reddell on windfall taxes

Summarised by Centrist

Michael Reddell critiques a column by Council of Trade Unions economist Craig Renney, who suggests New Zealand’s National Party adopt a left-wing tax policy, including windfall profits taxes, as mentioned in a United Nations report. 

Reddell says Renney’s proposal, inspired by European countries taxing industries with pandemic-related gains, has no relevance to New Zealand. 

He also notes the European taxes were largely on fuel companies due to EU sanctions on Russian exports, a situation not applicable to New Zealand. Reddell dismisses Renney’s broader claims about supermarket and bank profits and provides interesting data. . He further criticises Renny’s proposal for not considering this country’s high company tax rates and relatively low level of business investment.

Read more over at Croaking Cassandra