Damien Grant on the politics of envy

Damien Grant writes:

In the last 50 years, according to the published report, of the 311 wealthy families, only 62 enjoyed an inheritance in the last 50 years, and the total that was transferred was just $411 million, a fraction of the net worth of these individuals. Most received little or nothing at the start of their commercial lives.

The majority of those with serious capital in New Zealand today made their wealth in a free market by providing goods and services on an industrial scale that others were willing to pay for.

The days of the richest people being inherited wealth are long gone, and that is a good thing.

Let’s be honest. The number of citizens who pay more than their “fair share”, if we consider that to be sharing the tax burden equally amongst all of us, is low. There is a small number who do most of the heavy lifting, who pay a huge percentage of the tax burden.

Despite the hysterics of the report, the 311 maligned families paid, according to a graph included in it, roughly $1 billion in tax in the 2021 financial year. 

So 311 families paid 1% of all state revenue. This was higher than in past years, where the average has been 0.5%.

We have the analysis back-to-front. These small number of citizens are the engine of our economy. They are the superstars both in terms of fuelling New Zealand by their innovation, risk-taking and the contribution to employment and commercial life. And on top, they massively subsidise the rest of us with an outsized contribution to the Crown’s reserves.

Well stated. But that won’t stop Labour and Greens coming for them if they win the election.