Labour’s capital gains tax agenda?

September 11th, 2008

Does Labour have a hidden agenda for a capital gains tax?

I’ve now heard from several sources that the Labour candidate for Wellington Central told people at a cottage meeting he favours a capital gains tax to redistribute wealth. One person (who assured me she is not necessarily a National voter) says he also talked of the reintroduction of death duties, presumably for the same purpose.

The Wellington Central candidate is pretty close to H Clark, so what are they planning? From within her office before last election he developed the student loan bribe, over Michael Cullen’s passionate objections. So his envy of wealth can not be dismissed as mere juvenile burbling.

Remember, we did not know Labour was going to drive through an anti-smacking bill, or abolish our access to the Privy Council before earlier elections.

Filed under Economy, Politics, Wellington Central

Comments

“…or abolish our access to the Privy Council”

Actually, we did know that. Wilson opened submissions in 2001 on a “discussion” paper, and Labour had it as a policy in their 2002 election manifesto. Albeit, it was still a major constitutional change that should’ve been put to a referendum.

Death Duties have always been noted by Labour as something to revisit. CGT on the other hand is new. Possibly another example of biting the hand that feeds you!

“…going to drive through an anti-smacking bill…”

With help from Slippery Mr Key! All of your National colleagues voted for it!

CGT has also been Greens policy – as outlined by the Exclusive Bretheren & Rodney Hide prior to the 2005 election.

Of course, the media focussed on who pointed-out the policy, not the policy itself.

hi SF — why is a CGT a bad thing? My uneducated impression is that it would be a good step in the direction of housing affordability for average income NZers (like me) by discouraging property speculation.

For short term speculators in property our income tax system has been discouraging since the 1980s when disposals within 10 years became taxable.
We have other elements of a partial CGT regime, but it was Grant’s reported purpose in the topic that interested me more than the specific tax measure.
Wealth redistribution appeals to jealous people, those who blame their fate in life on others. The 39c tax rate which was Labour’s election policy in 1999 had no revenue raising purpose – indeed we had huge surpluses in the years that followed, irrespective of the 39c rate. T
They simply like to be seen to wack “rich pricks”. If that means we lose to Australia and further away those who earn over the “rich prick” threshhold ($60k), like our radiographers and tradespeople and entrepreneurs, Labour’s like “heh, who cares, the punters will not connect cause and effect”.

Capital gains tax is not about redistribution of wealth. It is about imcome tax. Wealthy people use Capital gains as income,overa decade or so.
This is shagging NZ.
Wake up Stephen.