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

Commerce Commission: Retail Fuel "Not As Competitive As It Could Be"

The Commission has outlined some options it considers could improve competition. There are two broad sets of options it thinks may have the potential to help create a competitive wholesale market. These are:

• Greater contractual freedom to make it easier for resellers to switch between suppliers; and
• Enabling wider participation in the majors’ joint infrastructure, notably the shared terminals and supporting logistics involved in their borrow-and-loan system.
Further options, including improving the transparency of premium petrol prices, are discussed in the draft report. More>>


Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>


IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>


Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

PM's Post-Cab: Bad Mail

Cabinet was updated on the process around prisoners sending mail, following the accused Christchurch gunman sending letters that "should have been stopped". All mail of "high concern prisoners" will now be checked by a specialist team and a changes to the legal criteria for witholding mail are expecting to go to a cabinet committee in this parliamentary session. More>>

Welfare: Ongoing Drug-Test Sanctions Contradicts Govt’s Rhetoric

Reports that two-thirds of beneficiaries who fail drug tests are still having their benefit sanctioned contradicts the Government’s so-called health approach to drugs. More>>


Welfare: More Measures To Help Those Facing Homelessness

Ministers have announced $54 million in Government funding for initiatives which will support at-risk individuals and whānau to stay in their existing tenancies. The funding will also provide additional wrap around services. More>>


Corrections: New Strategy On Māori Reoffending And imprisonment

Authentic co-design with Māori, incorporating a Te Ao Māori worldview, and greater connectedness with whānau are key elements of Hōkai Rangi, Corrections’ new departmental strategy designed to address the long-term challenge of Māori reoffending and imprisonment. More>>





InfoPages News Channels