Press Release: Capital Gains Tax Not a Real Solution

“The capital gains tax announced by National is a sticking plaster approach that will do little to address the real housing problem in Auckland”, says Conservative Party Leader Colin Craig. “What we need is a real solution.”

“The only certain outcome of more taxes is bigger government; but bigger government is not the solution,” says Mr Craig. “A National Government should know better than to introduce a new tax that will be the thin end of a wedge. A wedge that other “big government” parties will build upon in the future. At a time when Government interference in the market is already doing so much harm, this new tax is an obvious mistake.”

“The reality is that property speculation is occurring because the Auckland market is dysfunctional. A real solution would be to address the market dysfunction, starting with a reduction in red tape and the removal of excessive restrictions on developers” says Mr Craig.

“The problem with the Auckland Market is that Government, both local and central, is already too involved. The cost and lengthy process of negotiating the existing Government restrictions has slowed development such that the supply is short of market requirements. This is causing dramatic price escalation and those who are able to invest into the market, including many foreign investors, are benefitting substantially while everyday New Zealanders find themselves further removed from the dream of owning a home in Auckland.“ Mr Craig says.

“In this country we are seeing ever enlarging government that is incrementally reducing the rights of families and individuals. Make no mistake this new tax is a further reduction in property rights,” Colin Craig says.

Mr Craig says “The one small upside of the proposed new tax is that the IRD will now be monitoring foreign investment. We can hope that the Government is finally getting its head out of the sand and acknowledging that it has been wrong by allowing New Zealand to be sold off to foreign investors.”

ENDS

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