NZEI Te Riu Roa urges Government to implement capital gains tax
21 February 2019
NZEI Te Riu Roa welcomes today's recommendation from the Tax Working Group for a capital gains tax and urges the Government to have the bravery to implement it.
“Rebalancing our tax system will mean ordinary Kiwis and their children getting a fairer go. It’s important that any new tax system reflects and supports our goal of making New Zealand the best place in the world to raise kids. A fairer tax system and concurrent increases in wages should ultimately reduce the disproportionate tax load and financial stress that low- and middle-income families currently carry,” says NZEI Te Riu Roa National Secretary Paul Goulter.
“The current situation is completely unfair. Kiwi workers are taxed on every dollar they earn while people who can afford to invest in second properties enjoy a tax-free loophole. The Tax Working Group’s recommended capital gains tax, while not perfect, goes a long way to making the tax system fairer,” he said.
“A primary teacher on a $50,000 salary pays more than $8000 tax a year. Meanwhile, someone making a $50,000 gain on an investment property pays no tax whatsoever. How can anyone say that is a fair system?” said Mr Goulter.
“Tax is the way we invest in our future as a community through the likes of schools, hospitals and housing. We strongly believe a fairer and more sustainable tax system should also mean more resourcing for education and for children’s wellbeing,” he said.