Earlier this year Andrew Marr wrote in the New Statesmen, that Britain’s problem was that it wanted Scandinavian levels of Public Services and North American levels of taxation. His view was that Britain was overdue for an honest debate about tax and public spending. In New Zealand, there is a similar challenge.
The Government’s Covid 19 response, mainly via Reserve Bank measures, has enabled a mind-boggling increase in inequality, according to influential financial commentator Bernard Hickey. Covid response has saved multiple lives, but its refusal to simultaneously address inequality via taxes raises uncomfortable questions about how a leftist government has overseen a once-in-a-generation shift in wealth
The Tax Working Group says the gaping holes in our tax system make it unfair and undermine its integrity, but the prospect of the electorate embracing even its limited recommendations on taxing capital gains make for depressing contemplation.
Don’t hold your breath for recommendations of radical tax reform from the Tax Working Group. Chair Sir Michael Cullen says the 2020 election will be a referendum on tax and he is already kicking for touch
Jacinda Ardern will not campaign on a capital gains tax, but will seek advice and will not rule it out in a first term. The Nats have introduced a week form of CGT already. A more robust version needs serious consideration.
National’s policy opens the door to more effective capital gains tax, thus irritating investors and their base, while probably not achieving anything in practice. The worst of both worlds. Bonus question – does this policy effectively underwrite losses when the property bubble bursts? Plus another bonus John Key lie!
According to John Key the proposed tax on capital gains if a property is sold within two years of purchase is not a capital gains tax, there is no housing bubble in Auckland, and the proposed new tax does not represent a complete about face by the Government.
A guest post by Deborah Russell responding to Government claims that we already have a capital gains tax on the sale of land.
David Cunliffe’s performance in tonight’s head-to-head with John Key was exactly what I wanted to see from the next Labour Prime Minister of NZ.
Both sides of the political spectrum will draw some comfort from the recent OECD report on our economy, but overall the report is much better aligned with Labour / Green policy.
The “tradeable” sector is still shrinking. The property market is heating up again. We need a capital gains tax now.
Study proves that our ‘wealth creators’ are actually bad managers. We have the natural resources. Got the skilled workforce. We’re held back by the capitalist elite. Not interested in capital investment and paying better wages. They’re just rentiers out to extract quick profits: a formula of low wages, tax cuts, and untaxed capital gains. Parasites.
The latest ONE News / Colmar Brunton poll is bad for Labour, and not great for the Left. But it isn’t a verdict on Labour’s CGT proposal – the polling period finished before the policy was announced.
Apparently the undecided in this poll was 14%. I wonder why that was missed out of the reporting?
Key used to get away with spouting whatever kind of nonsense he liked. Not any more. His hysterical scaremongering on the subject of capital gains tax seems to have been a step too far. The teflon is long gone, and Key has cried wolf too often.
Even Bill’s readers like the CGT…
Yesterday’s Morning Report interview with Sydney Morning Herald economics correspondent Peter Martin was a real gem. The picture of capital gains tax that emerges is one of simplicity, fairness, and closing loopholes. No wonder the Nats hate it.
Labour have started setting out a bold, fair and plausible policy framework for the election. Rumours of their tax policy have generated more interest and excitement than anything the National government has done in the last three wasted years.
The run up to the budget has all been about cuts. How many? How deep? Like lemmings we’re accepting National’s framing, and marching even faster to our economic doom. But, there is an alternative. Instead of slashing spending, we can raise government income. Here’s how.
“Capital Gains Tax” with Craig Elliffe and Chye-ching Huang
Venue: Owen Glenn Building, University of Auckland
Time: May 5th, 6:30 PM
At the moment the UK is debating a rise in Capital Gains Tax, from 18% to 40 or 50%. The debate is largely going on within the ruling Tory party, as their coalition partners the Liberal Democrats won several tax concessions so that they could create a GBP10,000 income tax free band. The proposed tax rise is to treat earned and unearned income the same.
I am heartened that Phil Goff is trying to work with the Government to address over-investment in residential property. However, I think a […]
