2. Question No. 2—RevenueCHLÖE SWARBRICK (Green—Auckland Central) to the Minister of RevenueQuestion No. 2—Revenue2. CHLÖE SWARBRICK (Green—Auckland Central) to the Minister of Revenue: Does he stand by his statement on the tax system that [many people] assume that the system is progressive overall. It isn't"; if so why is our tax system not progressive?Hon DAVID PARKER (Minister of Revenue): Yes. The effective marginal tax rate for middle-income New Zealanders is generally higher than it is for their wealthier co-citizens. Some wealthier New Zealanders pay very low rates of tax on most of their income. That is why the Government has supported Inland Revenue to gather information to inform the Government and the public on the effective tax rates that New Zealanders at different levels of wealth and income actually pay. It is important that discussions around tax wealth and inequality are informed by facts and evidence. Chlöe Swarbrick: Does he consider it important to have a progressive tax system that can fund public services provide people with livable incomes and respond to the climate emergency?SPEAKER: Any two of those four questions. Hon DAVID PARKER: The four basic principles of any decent tax system are horizontal equity—people in the same economic position pay the same amount of tax—vertical equity that people that are better off at least pay the rate that people that are worse off than them—should be progressive. It should be administratively efficient for both the tax department and taxpayers and it should minimise the distortions that are caused to the economy or can be caused by improper tax systems. In respect of the principle that this most addresses it's the vertical equity issue. Chlöe Swarbrick: Why if the Minister believes that our tax system is not progressive while he also believes that it should be progressive is he not urgently putting in place tax reform?Hon DAVID PARKER: We set out our tax policies for the country in the 2020 election and we have followed them. We are sticking to those commitments and I would repeat what I said in the first paragraph of my speech: "Those coming here expecting announcements of new tax policy will be disappointed. None are being made. We have no secret plan to introduce a CGT nor a wealth tax or a deemed income tax nor others. The IRD is not doing any work to even develop these or other options."Chlöe Swarbrick: Does he stand by his response then to my question in select committee that the Government may do "perhaps nothing" even if the IRD finds that we have an unfair tax system? Hon DAVID PARKER: I've already said that we are sticking with our election policy of 2020 and it's absolutely clear that we have been doing so. I think that answers the member's question. Chlöe Swarbrick: Does the advice from Treasury and IRD officials that more than 40 percent of millionaires are paying tax rates lower than the lowest earners still stand? Hon DAVID PARKER: I haven't had an up-to-date report on that but it does highlight the issue that I find it absolutely incredible that some people in society say that we should not be conducting the information upon which to have a fact-based debate. That seems to be the position of Opposition parties. Chlöe Swarbrick: Does he agree with Treasury that "New Zealand's tax system currently relies heavily on a small number of tax bases" and "there are many ways in which Governments could seek to raise additional revenue from existing and new tax bases"?Hon DAVID PARKER: In respect of the first part of that quote yes I agree with it. But I re-emphasise that we are sticking with our 2020 manifesto promise which was in respect of raising the tax rate on people who had a taxable income of more than $180000 and I would notice—the Prime Minister has—that some Opposition parties have already announced their tax party policy for the next election; we haven't."