“We do not consider that New Zealand should adopt a capital gains tax. We do not believe that such a tax would make our tax system fairer and more efficient. Instead, such a tax would increase the complexity and costs of our system.”
– Labour’s 2001 McLeod Tax Review.
Last week, the Government’s Tax Working Group released its interim report signalling that a Capital Gains Tax of up to 33 percent – more than double the 15 percent rate originally proposed by Labour – will be introduced before the next election.
While Labour’s tax will exclude the family home and the land under it, once a Capital Gains Tax is in place all it would take is a simple stroke of the pen for any future government to extend it to include the family home.
In effect, Sir Michael Cullen’s report is a beautifully orchestrated political document that will provide a major campaign platform for Labour to fight the 2020 election. It looks likely to hit every note – increasing the tax burden on the rich while reducing it on the poor, embedding environmentalism into the tax system, and promoting Maori privilege.
We should perhaps have expected nothing less, given the political origins of the review, which arose out of a campaign blunder by Labour’s new leader Jacinda Ardern during the last year’s General Election.
Going into the 2017 election, former leader Andrew Little had decided to downplay Labour’s controversial Capital Gains Tax policy, which many in the Party believed had contributed to their losses in 2011 and 2014. He called for it to be reviewed by a Tax Working Group with recommendations to be presented at the 2020 election.
Jacinda Ardern, however, made a “Captain’s Call” to introduce a Capital Gains Tax during Labour’s first term. But her policy was vague and when the media asked difficult questions, she announced that the details of the tax would be decided by a Tax Working Group and introduced before the next election.
But proposing to introduce such a controversial tax before the next election, without a public mandate, came under such scrutiny that her position changed again – to what we have now: The Tax Working Group will recommend a Capital Gains Tax to be passed into law before the 2020 election, but it will not come into effect until 2021 – after it receives a public mandate at the 2020 General Election.
It will be reminiscent of the situation we had at the last election, where National had passed a law to give most Kiwi workers an extra $20 a week in tax cuts – by lifting the bottom 10.5 percent tax threshold from $14,000 to $22,000, and the 17.5 percent rate from $48,000 to $52,000 – but with an implementation date after the election. Those tax cuts were cancelled once Labour became the Government.
What all this means is that the Capital Gains Tax policy that is now being fine-tuned by the Tax Working Group will become the centrepiece of Labour’s next election campaign. And to remove any doubt about the political intent of this exercise, Finance Minister Grant Robertson recently said that he wants the final recommendations from the Tax Working Group to be revenue neutral, with any revenue gained from new taxes offset by tax cuts.
This week’s NZCPR Guest Commentator, investment analyst Frank Newman, has examined the Group’s 196 page report and notes that while it makes no firm recommendations, it does however signal a Capital Gains Tax by setting out two options.
“The first is extending the capital gains tax net to include:
- Interests in land (other than the family home). This includes all other residential property, commercial, agricultural, industrial and leasehold interests not currently taxed;
- Intangible property, including goodwill;
- All other assets held by a business or for income producing purposes that are not already taxed on sale (such as plant and equipment);
- Shares in companies and other equity interests.
“Exemptions will apply to the family home and ‘certain personal assets including cars, boats and other household durables… and higher value personal assets such as jewellery, fine art and other collectibles (rare coins, vintage cars etc.)’.
“The second option is to tax ‘deemed’ or assumed returns from investment assets. Having put this as an alternative, they then essentially eliminate it by saying, ‘there has been little use of accrual based taxes in practise by other countries and we do not support adopting one.’
“It is absolutely clear that the first of the alternatives will be recommended in their February report.”
Frank says the Tax Working Group justifies a capital gains tax by saying it will improve the fairness and integrity of the tax system, by levelling the playing field between different types of investments.
He then outlines their projections: “The report predicts a capital gains tax would collect $290 million in the first year ended 30 June 2022, rising to just under $6 billion in year 10. This is a surprisingly small amount when put into context – the tax revenue from individual income tax is currently $32 billion, GST $20b and company tax $14b.”
In all likelihood those revenue forecasts are grossly under-estimated – and intentionally so – in order to avoid scaring voters. It is inconceivable that such a fundamental and disruptive change to the tax system would be contemplated if it did not materially increase revenue.
Even the Tax Working Group recognises the disruption in their report: “extending the taxation of capital income will increase administration and compliance costs, and could lead to some reduction in the overall level of saving and investment in the economy.”
One only has to look at the complexity of the dozens of working papers outlining how the scheme could operate to understand what an enormous upheaval it will create and how, as Frank says, it will provide “a significant revenue boost to the accounting industry”.
Without a shadow of a doubt, once a Capital Gains Tax is introduced, less money will be invested in those productive businesses that will attract the tax when sold, and more money will be put into non-productive assets that are exempt, such as the family home, cars, boats, jewellery, and art.
This is the exact opposite of what our economy needs.
In his press statement, Sir Michael Cullen stresses he intends bringing “fairness” into the tax system.
But what is fairness? Fairness is an opinion, not a matter of fact. Many people would say that the ‘fairest’ tax system of all is a flat tax, since the more you earn, the more you pay. But Labour would not agree!
Sir Michael also intends introducing a racial bias into tax law through including “Te Ao Māori concepts and perspectives on the tax system”. He suggests further engagement with Maori is needed, “guided by the Government’s emerging engagement model for Crown/Māori Relations” and, when it comes to environmental taxes, “Māori rights and interests must be acknowledged and addressed”.
The document further states, “The Group is aware that any recommendations it ultimately makes in respect of extending the taxation of capital income could have significant impacts for assets held by Māori in collective ownership – such as Māori freehold land and assets held by post settlement governance entities. The Group intends to use the period between the interim and final reports to better understand this asset base and explore potential implications with Māori stakeholders.”
In other words, there will be more special treatment for Maori, but, by delaying decisions until the final report is released, Sir Michael is cleverly avoiding public controversy.
So what tax advantages do Maori have at present you might ask?
Firstly, Maori businesses can register as Maori authorities and pay 17.5 percent tax, instead of the company rate of 28 percent.
Secondly, tribal corporations, which include some of the wealthiest businesses in the country, can register as charities to avoid paying their “fair share” of tax altogether.
This is due to changes introduced by Labour in their 2005 Charities Act, which allowed Maori tribal groups to gain charitable status. Until then, organisations wanting to register as charities not only needed a legitimate charitable purpose – involving the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community – but they also had to meet a public benefit test, to ensure that charitable benefits flow into the wider community and not to private individuals and their relatives.
Since Maori tribal organisations are based on the blood ties of relatives, they failed the public benefit test. However, through section 5 (2) of the Act, Labour introduced an exemption from the blood tie disqualification for those involved in ‘the administration and management of a marae’.
As a result, most of the contributors to the $40 billion-plus combined wealth of the Maori economy – such as the $1.3 billion Ngai Tahu corporation, which operates over 30 commercial businesses – are registered as charities and are essentially tax free.
Although the Tax Working Group has indicated it intends proposing reforms to better ensure that that the assets and income of charitable organisations are used for charitable purposes, they also note that charities taking an “intergenerational” approach should be protected, which makes it unlikely that the changes will require Maori corporations to pay their fair share of tax.
In summary, the Tax Working Group will recommend a new Capital Gains Tax, but not wealth taxes, nor land taxes.
When it comes to environmental and ecological taxes, their recommendations will include expanding the Waste Disposal Levy, strengthening the Emissions Trading Scheme, and introducing congestion charging.
While tax changes for business to reduce tax avoidance are still being considered, any reduction in New Zealand’s company tax – which is now one of the highest in the world – has been ruled out.
The Group is also still forming its views on the best ways of using the tax system to enhance productivity, and to reduce compliance costs. The best way to reduce compliance costs, of course, is to keep the tax system simple – a capital gains tax is anything but simple.
As the 2001 the McLeod Committee on Tax said, “We do not consider that New Zealand should adopt a general realisations-based capital gains tax. We do not believe that such a tax would make our tax system fairer and more efficient, nor do we believe that it would lower tax avoidance or raise substantial revenue that could be used to reduce rates. Instead, such a tax would increase the complexity and costs of our system.”
With Labour promising to pass their Capital Gains Tax into law before the next election, there is little time to ensure that this complex change to our tax system is done properly. The Tax Working Group’s final report is not due until February, which means draft legislation would not be available for some months after that.
Given a Capital Gains Tax Bill is likely to attract thousands of submissions that would highlight many of the serious “fishhooks” that would undoubtedly be found in the draft law, the Select Committee would likely want to hear all submitters. Adequate time would therefore need to be scheduled to ensure that a comprehensive public consultation process can take place – since a poorly drafted Capital Gains Tax, which for many New Zealanders would be set at the highest tax rate, would have an extremely detrimental impact.
So there we have it. At this stage, Labour’s plan is to undo much of the good work that has been carried out over the years in making New Zealand’s tax system admired around the world for its simplicity and effectiveness.
Instead Labour will create gross inequity by imposing a Capital Gains Tax of up to 33 percent to penalise anyone (except, probably, Maori) who has tried to get ahead by investing in businesses, or shares – or who owns a rental property, farm, or a family bach. Environmental taxes will also be introduced to further punish businesses and farmers. And, to make it all more attractive to their voters, they will offer tax cuts to help the less well off.
Is this what you want? If not, send in a submission to email@example.com by 1 November 2018.
THIS WEEK’S POLL ASKS:
Do you think the Capital Gains Tax as outlined by the Tax Working Group will be good for New Zealand or bad?
*Poll comments are posted below.
*All NZCPR poll results can be seen in the Archive.
THIS WEEK’S POLL COMMENTS
|We pay enough Tax If the maori wealth is 40 Billion why then are maori children going to school with out their lunch !!!!!||Ross|
|Additional tax is just expanding bureaucracy.||Sam|
|Backward step for us all, instead of growing/improving NZ’s financial wealth this is an envy tax stealing from those motivated to improve this country and gain a decent standard of living with (hopefully) a comfortable retirement for all the hard work and sacrifices||Dennis|
|A capital gains tax is fundamentally a wealth tax. If you buy a building for $100,000, and eventually sell it for $200,00, the gain is illusory, not real. You started with the value of a building, and ended up with the value of a building. The “gain” enables you to buy the same kind of building again–nothing more. There is no gain; but there will be a tax!||Dallas|
|Words fail me. The older I get the more cynical I feel. I have done without to be mortgage free and I am happy with my lot and I certainly do not feel envious (which is what it is all about) towards folk who have more than I have – good on them. A Capital Gains Tax – NO NO NO. Why do I like hearing from the NZCPR because I can vent my spleen – and in many cases in frustration and anger. Why is this not in the public domain? 90% of the population have no idea what is going on and being decided for them – what an apathetic lot we are. And why were we not told, via the media, of the online SURVEY re Maori language indoctrination in our society? Time for another blood pressure pill!||Fiona|
|Snake oil salesman Michael ‘rich prick’ Cullen selling us a ‘go light on Maori’ tax policy. What else can you expect from communists like Ardern. & Robertson? We need to start a movement that says WE HAVE NO CONFIDENCE IN THIS GOVERNMENT. Mind you National needs to change their leader to J. Collins and we can get to the real opposing of this shambolic, toxic government and effect an early election.||Monica|
|Taxcinda on form again! Short sighted idiots this so called government. Will cause a worsening of the rental housing shortage as investors move their money into their own residential property.||Rex|
|This govt is an embaressmnrt to most kiwis. When Jacinderella returns from un then her first taste will be to change the name of ur country to new Venezuela , a subset f the communist world. This is what labour wants and bring us down to third world status. Maybe she is looking for handouts from rich nations, but excluding USA which she has trashed with a UN speech.||Allan|
|How is it possible to have a Capital Gains Tax imposed on property if the property is sold at exactly the same rate as it was purchased 10 or 20 years ago, which is market rate. To use money gained from an earlier purchase in order to replace property with another one, the price of the new property will be the same at market rate. Any money gained from a rental property comes from the rent or lease, not a market based sale and Government taxes this as Governments share. Therefore, an imaginary Capital Gain is “Double Dipping”.||George|
|It will be bad for those who have worked hard, been frugal, avoided expensive luxuries a to save for their future. We paid all necessary tax on our earnings so the property was bought with tax paid funds. We pay income tax and gst on any rents so why another tax on top of all that. Fair is certainly isn’t||Mike|
|Bad, Bad, Bad. – but at least it would mean no Second Term for an incompetent Labour / Self- serving Winston Peters Government. AND no more of the half-baked Green’s ideals of governing.||MervB|
|Again they fail to recognise the long term ramifications of robbing those that have gained some wealth through saving hard and good work ethic.||Roy|
|Yet more concessions to Maori, another New Zealand first, sorry first in New Zealand, Probably the only country in the world where Talking of treating everyone equally gets you branded as a racist.||Geoff.|
|This will be another grab by Labour who can not think above tax. Bill Rowlings many years ago, put a 10%. tax on land sales and We were caught in the debacle. This is going to stress people who have worked, saved and been excellent citizens. Those with little initiative will reap the benefits. Many of the intellectual, young thrusters will pack up and depart NZ again. A stupid, ideolisdtic group who are out of their depth in govt.,||Elizabeth|
|Little that this government is doing seems to be resulting in gains for the nation sadly!!||Hugh|
|What a bloody mess, They want us to invest in NZ company’s, , But now they are going to tax shit out of us. I use to think Cull was a good guy, But now ??||Stan|
|Labour promised no new taxes. This is what this is. It’s bad enough that they promised no new taxes and then increased the existing taxes on fuel, ACC are going up. What other ways are they dreaming up to screw us?||steve|
|We are over taxed now. More tax more welfare!!||Hone|
|bad bad bad||Wayne|
|Kiwis should be allowed one rental property free of capital gains tax. Maori should pay tax because they were given the money in the first place.||George|
|Michael Cullen has long wanted to extract more money from the so called “rich pricks” seems he will finally have his way, yet another disastrous tax of Envy from our left wing socialist government 🙁||John|
|Its a terrible idea that will destroy reinvestment by giving the money made by hard working people to those who have no idea how to spend it wisely.||Paul|
|Absolutely a disaster for our country. Nefarious Cullen has wanted to this for years and now has his chance. If National has any sort of spine it will pledge to change any tax changes Labour introduce. Maori businesses sshould also be paying company rates.||Murray|
|Too many taxes already.||Simon|
|Just about the last straw !!||June|
|This is the catalyst for our family to remove our wealth from NZ NOW. We will no longer invest in an over-taxed economy that practices unfair APARTHEID law. We no longer feel we can plan appropriately. There is a never ending socialist agenda hell bent on re-distributing our carefully accumulated wealth to their own constituents. We HAVE already paid more than our fairs share in the form of income tax at the highest rates, on the way to accumulating capital assets.||Geoff|
|I believe that a very simple and easy to administer tax system is what is required. CGT will be really complex to administer and the only people to benefit will be accountants. When I sell a property and buy another of equal quality it will cost the same HAVE I MADE A CAPITAL GAIN No I have not I have just kept up with inflation which the Government is in the position to control So this is an inflation tax and of course an envy tax. What is needed is a flat rate of tax enough to cover the major items of Govt Expenditure ( Social Welfare, Education, etc) with the rest being covered by GST To compensate the lesser paid there would need to be an effective tax free base but this needs to covered by your own expenditure ie Rent Interest payments School fees and the like. You provide the receipts you get the refund ( that way you cant employ your dog for the tax free limit) One of your recent columns mentioned one of the Canadian States increased the marginal tax rates for redistribution purposes and got less tax overall Remove the incentives to avoid tax MAKE IT SIMPLE||Robin|
|Here is another policy that emphasises the inferiority of maoris. If they were equal in ability they would not need this mollycoddling. Why do they continue to tolerate these cynical attempts to purchase their votes?||TOBY|
|This government will sink the country in order to get the votes of the Maori and the non thinkers who stand there with their hand out. Tragic||Tom|
|Crazy. Cullen had 9 years in government to improve our tax system and came up with nothing.His CGT proposal will not work. We need a ‘flat’ tax rate for earners and the same rate for business. Maybe a capital gains tax for land||Pete|
|You cannot tax a country into properity Labour and the coalition think you can||Les|
|To introduce CGT is just another tool to undermine any incentive to build personal wealth and goes hand in hand with how landlords rental property investments are made totally unattractive. In short , we are again dealing with typical hallmarks of a heavy handed socialist approach not only to destroy personal wealth but to redistribute wealth to finance the non productive segments of society ( securing votes at the same time)and also act as the great equalizer ( that’s where Marxist ideology comes in) Naturally , the tribal elite have excluded themselfes — aided by generous tax laws for their companies- from this massive redistribution of our wealth. At the same time they are demanding more billions of taxpayers money to be channelled into numerous Maori outfits which have time and time again proven to be nothing but BLACK HOLES where vast sums simply disappeared. This column is simply too small to list all these negative examples. This Government is dangerous to the well being of this country .||Michael|
|Tax gathering is for the purpose of funding the Government machine. Remove the nanny state philosophy reduce Government spending and eliminate the need for more taxes taxes is the only way ahead.||Nev|
|Happens every time Labour get near the treasury benches. Non of then (or very very few) have been in business and haven’t got a clue. Just tax the rich and everything will be fine. Yeah right!||Graeme|
|This has to be the biggest no brainer I have ever heard of. More bureaucracy to administer it and more accountants, lawyers and financial planners working out ways to avoid it. We have enough people working out ways to avoid taxes now without adding another lot of them to administer more and more complex tax laws In the meantime the country slips down the list of rich nations until we finally become a banana republic. Those with their hands out all the time wont care until the time comes when the government goes broke and their benefit stops||Colin|
|With the tax reforms , the seabed and foreshore , labour will never get my vote again||Buster|
|Broken promises as transparency||Catherine|
|And here comes more separatism with Maori being given special concessions! Time for our taxes to be reduced – all that tax on motorists, who are an easy target must be largely wasted judging by our roads, especially in the South Island. Labour are traditionally a ‘tax and spend’ government and the present lot, who are mostly list MPs, including our clueless so-called leader, need to pull their heads in and unless they can make systems more efficient, leave well alone. And stop the welfare handouts (socialism) or we will eventually be another Venezuela. The more you give in free stuff, the less people have incentives to help themselves! rant rant!||Carolyn|
|Will raise compliance costs and reduce incentive to save for retirement. I wonder how Kiwisaver will be treated..||Tony|
|The perfect way to knock people down who have done the hard work and have invested for their, and their family’s future. Also the perfect way to say to the lazy scum suckers that milk the system, smoke, drink, take drugs, don’t look after their families, that it’s OK to just keep doing what you are doing. Just vote for us and we will make sure your useless existence is supported. And by the way, if you have any native ancestry, things are going to be just great for you, Bro!||Neil|
|I am in favour of some form of CG tax but what this awful Government and it’s cronies will implement will affect us all. We pay tax on savings, term investments etc so why not on rented dwelling profits when sold — all are just some form of saving. What clowns voted for this mob ????||Alan|
|Leave well enough alone …||Geoff|
|NZ house prices are grossly overpriced, something has to be done||bryan|
|33% is too high.||David|
|Sooner the better.||Mark|
|i am not a greedy landlord ie below market rents. rental earning is crazy compared to capital value and rate demands etc etc||Bill|
|There is no need for it, as honest people follow the present law and include realised capital gains – from goods/property where their INTENTION was to make a profit – as taxable income in the year of realisation. What is the fuss about?||William|
|A CGT will divert up to 33% of New Zealand’s scarce investment capital away from allocation into the private sector where it can do its best and into the government sector where it is likely to be used for political bribes, bad policy and bad spending. How is that good for increasing investment in the productive sector and growing New Zealand’s economy? How does the government helping itself to some of our already very shallow capital markets via a CGT going to help grow that market and increase the pool of investment capital?||David|
|Just another means of extracting more money from a fortunate few.||David|
|Very bad for NZ and the middle income people who pay tax.||Peg|
|This government is making such a complete mess of everything that they will be very keen to tax us more and more and this gives them another chance to impose an even greater tax burden.||Roger|
|Tax and spend. Nothing new or unexpected here from Labour.||Bruno|
|The envy tax, because socialists have always strived to encumber those that produce wealth who are perceived by the left to be greedy, and everyone who strives harder and takes more risks to be financially secure are regarded as crooks. Not surprising that Cullen, that financial incompetent, should be leading the charge with a Prime minister who lacks maturity in the ways of reality playing the Marxist game.||Rex|
|Once again it is Labour gone mad, we need to get them out of power before they destroy the country.||Fraser|
|A very bad idea!! If Labour presses on with this proposal, there’s just no way that they will be sitting on the Treasury benches after the next general election. Even if Labour drops the insane prospect of a possible Capital Gains Tax, their Te Reo plans, which contain an implied threat of compulsion, will probably frighten off a considerable percentage of their traditional support base. They will certainly never receive a future vote from me, nor from many to whom I have recently spoken., And unless Winston and the rest of NZ First start living up to their pre-election promises, they’ll be ‘toast’ as well, for sure!||Les|
|Another example of Labour & Greens “trawling” for the Maori vote||kabe|
|Bad, It’s gone rotten, as with the Labour Party, and their mates, I’m glad I’m in my twilight years, It’s the kids and grand kids I feel sorry for.||Athol|
|The failing government needs to look for any source of revenue as all its ridiculous policies cascade into economic disaster. Pity ALL ordinary mortals do not have the real (Equal) opportunity to enjoy the job of Prime Minister and the fat cat salary that affords. Looking forward to the next election.||zoran|
|Sounds like a Robin Hood tax. Take from the rich and give to the poor. It’s just another way of hindering those who wish to get ahead.||Dennis|
|Another Labour theft! Remember “No new taxes”!||Peter|
|The Labour Party shows it’s true colours as it forges ahead with the attempt to reduce us all, except the Maoris, to the level of peasants. So what do we see for the next two years. There will be a large reduction in homes to rent, I’ve already sold mine, non Maoris will have to pay to visit a beach or go fishing. Beaches will be guarded by sniper rifles, the stock market will be virtually destroyed and businesses along with it for starters. The new taxes on petrol will have reduced motoring to basic essential use only but the population of Auckland will be riding their new rail system paid for by the rest of NZ and diesel prices will have increased the grocery bill through the roof and so the story continues.||Chris.|
|It will be interesting to see how much damage these socialists can do in one term.||Peter|
|Establishing a base value on property based on Councils RV’s is a joke. These valuations have no consistancy or relativity checks of which I can givew many examples in my immediate location. I have objected to my RV successfuly for the last three council revaluations. In Auckland the number of objections to this years valuation is such that council’s work load has required them to extend the period for replying to their valuations by six months||Michael|
|Its not fair nor will it do any good. In fact it will probably do more harm.||diana|
|Why boyher trying all your life to get ahead. Easier to marry a Maori.||Allan|
|Real Socialist Govt which will bring our country to its knees are following Venezuelas Socialist agenda||Norm|
|I agree everyone should pay there fair share of tax BUT a capital gains tax as outlined would be useless and would seriously hamper business nothing would grow the economy would slowly crumble||Peter|
|All charities All , should pay tax eg . Sanitarium Health Food Co. No exemptions||Bruce|
|Has not been beneficial to the tax paying people of other countries that have capital gains tax.Another government money grab, telling people we know better how to take care of your interests.||Gillian|
|We are encouraged to provide for our future and retirement. For years property has been a good investment, especially when held for many years (with the exception of the last few crazy years in Auckland and now other main centres). So if we are to be taxed 33% on sale of said investment, what is the point? May as well put the money in the bank. So that means that rental properties and maybe holiday rentals will become scarce. Why should a landlord put up with tenants, pay the rates and insurances, etc to be heavily taxed on any resale profit? It does not make sense. So instead of $$$ flowing in our economy, people will hold onto their capital and the economy will slow down. Not good for the future of everyone.||Heather|
|It will stop the only way most people have of offsetting high personnel and “add on ” Taxes as most assets are accrued from Tax paid savings !||Ross|
|If they propose this at the next election this will be one sure way for the govt not to be re-elected again.||Robert|
|Would need an army of bureaucrats and inspectors to administer. How would they treat inflation?||Dave|
|But special exemption for maori interests would be inequitable. Application for charitable “purposes” needs to be more tightly controlled.||Tony|
|To complex and a misguided wealth tax||Peter|
|This is a retrograde step, designed to appeal to the ‘have not’ brigade that the Chardonnay socialists such as Cullen hope will keep their lot in power. Nothing has changed since the McLeod review. This working group is a labour controlled puppet.||Allan|
|To a socialist/communist government, it matters little whether a capital gains tax raises more money for the state. Just so long as it clobbers the wealth producers. Roll on the new state of Aoteoroa/Venezuela||John|
|Early days yet.||Mike|
|I am a rental investment owner and this will drive me out of the business. It is time Maori paid their way with taxes and its time this govt gave taxpayers a break and ceased to consider that everyone with nothing got there due to none of their own doing. We need some collective and personal responsibility ad some consequences. This wet, PC government has no common sense whatsoever. The foreshore should be for everyone. If you commit crimes you go to prison.If you work hard and accrue a rental portfolio you should be rewarded, not vilified. We already pay our taxes. Its time the no-hopers paid theirs.||Rod|
|Nightmare situation for everyone affected. Great dis-incentive to anyone trying to get ahead. Will consider going back to the UK.||Marion|
|No way this Labour fiasco need to be curtailed NOW. I would like to see a VOTE of NO Confidence called along with a new election.||Carl|
|About time,but only 15 %||Ian|
|We are allready over taxed..||Norm|
|The politics of envy and entitlement will eventually make New Zealand into another Venezuela. Its only a matter of when, not if.||Frank|
|Lost for words…. Worked so hard for what we have, and here comes the great reaper…..||Mabel|
|Too many people don’t pay their fare share of TAX’s. So I think it is a good idea. A lot of people with rented homes and buildings don’t pay their share in Tax’s. Its time to catch them. They always claim on tax’s. Maybe time to pay their share in tax’s.||Robert|
|NO. They tell you to invest for your retirement so then they can take it off you by way of a tax.||Clark|
|Tax by envy. Michael; Cullen getting back at the “rich picks” who paid for his classy education. the last tax NZ needs||Jeff|
|Govt wasting more of the tax payer money for their own ends to subsidize payment to get more votes. LOL.||IAN|
|Och it will hurt everyone who is trying to get ahead. and why do the Maori’s get special treatment||Cherryl|
|What is the point in investing in companies for a better retirement income which is taxed now, then may have to pay CGT on top of that, may as well blow the money now.||Tony|
|Just another nail in the coffin for stability for our fragile economy moving forward. The cost of administartion will be prohibitive . The extent it could go to with not only housing but shares, bussinesses will destroy the dreams of my generation hoping to retire reaping the rewards of years in business.||Salve|
|I will be selling my rental properties||Philip|
|There is just no point in working hard to save for old age in this country. Capital gains tax will just kick every hard working NZer (except maori) a kick in the guts. Seems it better to bludge and spoung all your life … AND claim to be Maori… then, you wont need to pay bugger all tax. This government makes me sick.||Des|
|A disgusting stab in our backs.||Don|
|SHOCKING, all sensible opinion says no to a CGT. If we get a CGT it should include the family home. That is fair, but would be politically unacceptable to the demo-graph Labour are trying to seduce. Bring in a flat tax and put the redundant ird workers to good use doing productive stuff and alleviating the lobour shortage in the regions.||Willy|
|If it isn’t broken, then don’t fix it !||Brian|
|no reference to base value date||Michael|
|The big question is what is the incremental tax revenue to be used for? Election bribes probably those that targett voters with no personal responsibility. Taxes kneecap aspiration.||Richard|
|where is a sample submission I can copy to make my own submission||Grant|
|Any new tax is a manipulation of the market and is open to great abuse.||Ray|
|CGT is basically a tax on inflation. Its well known that to maintain the value of your assets you need to buy and sell on the same market. If the govt is going to clip the ticket in the process your position worsens. As for the maori thing, I believe that the positive discrimination thats been applied in this country for the past few decades has already gone too far and is now just plain old racial discrimination with official approval. Discrimination IS discrimination!||Alan|
|Unfair for productive entrepreneurs and ridiculous compliance cost||Michael|
|Capital Gains are rewards for saving and efficient use of capital and are also the result of inflation which no one can stop||Michael|
|another bungle by labour as the wheels fall of the Govt they are clutching at any thing as we get to the next election it will be a run away train with no wheels good for national||Russell|
|Very bad for our economy except for certain groups it seems.||Christine|
|The more important question is why do “Maori” entities continue to get preferential treatment.||Mike|
|BAD – really bad. Just more of the Liberal Left determined to extract money (for themselves) from the backbone income generating enterprises while utilising, fostering and encouraging many less fortunate or underprivileged throughout New Zealand. Just another eventual knee capping of New Zealanders ‘freedom’ within Labour’s drive for socialism – vis-a-vis Russia, China etc.||Stuart|
|Capital gains tax is another sign that this government is irresponsible and unaccountable for NZ’s debt and bad spending practice. Sounds like distribution of wealth going on here! Taxing money that we’ve already been taxed on is unacceptable! So the Labour coalition government is NZ’s version of the sheriff of Nottingham… robbing mum, dad and the kids! This coalition has to go….. far, far away!||Steve|
|Just another tax grab Try cutting expenses instead of ridiculous wasteful spending by Prime Ministers with babies.||Robert|
|An envy tax. Hopefully this coalition’s damaging actions last only until the next election.||George|
|Better sell the family bach & buy a $500,000 boat||John|
|It will ultimately hurt the lower end of the spectrum. I already expect to pay income tax if/when I sell my investment properties. I for one will get out of the rental sector asap and suspect others will too. Rental housing stocks will diminish, rents will inevitably rise. Who wins, who loses?||Martin|
|A Capital Gains tax in NZ is uneconomic ie costs more than it yields and is outrageously politicalin favour of the socialist ideals of Labour & their cohorts.||Bob|
|It does not target the residential home ‘flipper’ that buys the dunger, does it up and flicks to purchase the next ‘residential family home’. CGT should apply to all property if its implemented.||Toni|
|….Yet another MONEY GRABBING action by the bunch of lousy lowlife politicians sitting in their seats of corruption, control and egocentric existence…!!||ChrisH|
|A capital gains tax is the last thing we need as a country. It would only be time until some government imposes it on the family home. New Zealanders should say NO, loud and strong!||Andrew|
|It is a really dumb idea. Labour deserves to lose the next election so the tax can be defeated.||Michael|
|We are taxed too much as it is. The last thing we need is a complicated tax on capital.||Anita|
|Labour will ruin this country and a capital gains tax is just the last straw.||Roger|
|NO NEW TAXES!||Graham|