WOMEN AND THE TAX WORKING GROUP
Abstract
The impact of the tax system on women and men is not the same. Women earn less than men, have lower levels of savings, and derive more of their income from wages than wealth. This means that progressivity is particularly important for women, and the taxation (or non-taxation) of savings and capital is particularly relevant to men.
To provide a basis for discussion of the way in which the New Zealand government’s Tax Working Group (‘TWG’) was invited to consider the issue of gender, and how the recommendations in its final report would impact women, this article provides an introduction to the differences between men’s and women’s experiences of the tax system. These include the relationship of the tax system with the transfer system, and the gendered difference in treatment for non-compliance in each system.
This article examines the recommendations in the TWG’s final report and explains how gender was reflected. It also critically examines the background paper, ‘Taxation and Gender’, that was provided to the TWG. The paper offered just one substantive point for discussion: ‘Does the Group agree with the Secretariat’s overall judgement that childcare costs should not be deductible?’ The limitations of this focus are discussed. This article suggests that the restricted view of gender and tax in the background paper reflects a broader lack of understanding of gender issues across the New Zealand public sector. It reflects on how this situation came about and considers how it might change.