Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Envy tax no path to prosperity


The Government’s proposal to double tax people who save and invest is offensive to New Zealand values, says ACT Leader David Seymour.

“It is wrong to idolise envy and punish success. Those are not the values of an ambitious and prosperous society. ACT believes we should celebrate and encourage achievement.

“A capital gains tax also represents double taxation. The market value of an asset is reduced because prospective owners know they will pay tax on its future income. Taxing the gain in the value of the asset as well means the owner is double taxed.

“This tax will reduce saving and investment in productive assets – the very assets an economy needs to grow and prosper – by double taxing them.

“New Zealand has long struggled with low rates of saving and investment. Why would the Government punish people for putting money aside through their KiwiSaver or starting a small business? By effectively putting a tax on ambition and success we will get less of it.

“Introducing a tax on capital gains at a person’s marginal income tax rate and increasing the threshold at which the 10.5 per cent tax rate applies will create a bias against saving and investment in favour of spending, making us all poorer over time.

“The last thing New Zealand needs is a more progressive and more complicated tax system.

“According to Treasury, the top five per cent of adults already pay a third of all income tax, while the bottom 20 per cent pay nothing.

“This tax about the politics of envy. The Government will soon realise that we can have an envy tax, or our country’s success can be the envy of the world, but we can’t have both.

“If the Government wants a more equal society, it should back those New Zealanders that struggle – for example by building the best education system in the world – rather than dragging down those who achieve and succeed.”

ends

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.