The Green Party has revealed their proposal for a windfall tax on excess corporate profits.
The policy, which has been implemented in some EU countries and others around the world, would see companies pay tax on excess profits.
Finance spokesperson Julie Anne Genter told Q+A it's not fair that companies are "raking in record profits" while others are going hungry amid a cost of living crisis.
"Unfortunately, because of our market structure, there are a few big corporates ... making excessive profits, essentially profiteering from the fact that Kiwis are having to pay more for the basics," she said.
"The Commerce Commission report found that supermarkets were making excess profit of $1 million a day. Now, that's not right at a time when families are being forced to choose between paying their electricity bill, paying their rent and getting food on the table."
Genter rejected the idea that the tax would disincentivise innovation.
"By definition, excess profit is not due to something that the corporations themselves have done. It's due to external circumstances."
These circumstances include government policy or times of high inflation, Genter said.
"If they're making these super high profits off doing nothing, there's a disincentive to innovate and to invest in R&D (research and development). They can just sit back and get the money."
She said the current system only works for a handful of people while most Kiwis continue to struggle.
"A few big corporates making excess profits doesn't benefit anyone in New Zealand, except maybe their investors and shareholders and their senior executives."
The Greens' policy discussion document called for an overhaul of the corporate tax system, saying it would "better spread the impact of inflation".
"While some businesses have struggled through Covid-19 (mainly smaller businesses), others have brought in huge profits due to external factors," it said.
Genter says the Government "can't afford to keep doing nothing in this area".
"Ultimately it's up to us to decide what kind of economy we want to have. And I would say most New Zealanders believe that everyone should be able to pay for food, their rent, their housing and the ability to get around."
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