While in government, National has done nothing to address the hole, rather it has decided to ensure the interests of its stakeholders are pandered to.

In a sense, and with regard to property investment, in the absence of a capital gains tax, New Zealand current status has provided a haven for tax avoidance. Is it any wonder the property speculators have invested in this sector at four times the rate of investment received by the New Zealand Stock Exchange. Why, because to date such investment has been able to avoid paying tax, whereas investment on stocks is not.

This hole has arguably robbed this young country of revenue that could have been used to assist the nation's growth. In short, that has been allowed to occur because of political timidity decisions over prudent governance.

Is Labour's brave tax plan going to draw favour from the voting public? The answers to that wont show until November this year. But in the meantime, the public will have to consider:
* Is Labour's CGT proposal a fair and equitable tax?
* Is Labour's CGT proposal a sound partial medium to long term economic solution?
* Is National's partial sell-off of strategic public assets only a short-term response?
* Will Labour create a means to prevent landlords from pushing CGT costs onto tenants?
* What party's argument is most credible?

FORE MORE, SEE:

• Gordon Campbell - On the capital gains tax debate

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