Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


A Capital Gains Tax will help our economy

Fairness and efficiency, not political rhetoric, must be the focus as the government works to create a better taxation system, Peter Malcolm, the spokesperson for the income equality group Closing the Gap, said today.

A capital gains tax simply must be part of any new legislation, Mr. Malcolm said, because without one, the unfairness of taxing some forms of income and not others will continue to fuel inequality.

“The arguments against a CGT are familiar, but they don’t hold water,” he said. “Of course, some who are better off now will pay more, but it’s only fair that tax-free profits should being included in the same tax net as for wage and salary earners.”

New Zealand is the only western democracy to not tax capital income, Mr. Malcolm said, and that’s not an efficient way to run an economy.

“Without a CGT there is an incentive to invest in assets where the capital profit is not taxed,” he said. “Our productivity as a country is relatively low, and one reason is that too much capital is invested in assets for tax-free capital gain and not enough in better technology and mechanisation to boost productivity.”

“Fairness also dictates the family home should not be exempt, since that would skew investment toward pricey homes,” he said. “There are better ways to protect and promote home ownership, including graduated taxation — for example, exempting the first $20,000 of capital gain on the family home for each year of ownership.”

Kiwis have been pressing to close the inequality gap for years now, he said. We sincerely hope the government continues to show the kind of strong compassionate leadership it has displayed in recent months to introduce a tax system we can all be proud of.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

National Terrorism Threat Level Moves To Medium
Medium is defined as a terrorist attack is assessed as feasible and could well occur. The new level remains higher than it was before the 15 March terrorist attack when the threat level was low. More>>


Environment Aotearoa 2019: Report Warns Environment In Serious Trouble

The report is jointly produced by the Ministry for the Environment and Statistics New Zealand, and is a follow on from the last report in 2015.

The report says the way New Zealanders live and make a living is having a serious impact on the environment, and the benefits New Zealanders get from being in nature, though not measured or quantified, could be lost. More>>


Gordon Campbell: On Scrapping The Capital Gains Tax

As PM Jacinda Arden said yesterday, there was no point in Labour bringing a proposal into the House that it didn’t have the votes to get passed. Looking back, maybe she always felt this outcome to be inevitable... More>>


City Rail Link: Billion Dollar Cost Rise (And Preferred Bidder)

The revised cost envelope for completing the entire Auckland City Rail Link project now totals $4.419 billion. The revised cost has yet to be endorsed by the project’s sponsors (the Crown and Auckland Council). More>>


Meth Scare: Debt Write-Off For HNZ Meth Testing Evictions

People living in Housing New Zealand (HNZ) properties who were wrongly evicted because of flawed methamphetamine contamination policies will have their related debts with the Ministry of Social Development (MSD) written off. More>>


RNZ Report: Fears Grow For NZ Nurse Kidnapped In Syria

A New Zealand nurse working for the Red Cross was captured by Islamic State (IS) in Syria more than five years ago, and there are now public pleas for any information that could help bring her home. More>>


Streets Blocked In London: Climate 'Extinction Rebellion' Reaches Aotearoa

Across the world, thousands of people are taking part in a rebellion to avert climate, ecological and human catastrophe. This begins in Aotearoa New Zealand today. More>>





InfoPages News Channels