Scoop has an Ethical Paywall
License needed for work use Register

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


Dunne: Labour's desperate, ignorant attack on achievement

Dunne: Labour's desperate, ignorant attack on achievement

Labour's new tax package is little more than a massive attack on personal achievement and success, UnitedFuture leader Peter Dunne said today.

"The 'better off should pay their fair share' argument that Labour is pitching is just a dog whistle call to Labour's traditional constituency to come home.

"This has nothing to do with good policy or sound economics, but everything to do with satisfying entrenched envy within the Labour left, and seeking to stop Labour haemorrhaging its core voters to the Greens," he said.

Mr Dunne said the policy represents the end of the broad economic consensus since 1984, and means New Zealand faces a period of more disruptive policy shifts every time there is a change of government.

"That uncertainty will not be good for the New Zealand economy, or jobs or future prosperity," he said.

As Revenue Minister, Mr Dunne says Labour's capital gains tax would be a "bureaucratic nightmare".

"I doubt it could be implemented easily or quickly; the revenue it could raise is likely to be low for at least the first decade, but compliance costs will be immediate and significant. Certainly it would not raise anywhere near the revenues needed to pay for only one of Labour's spending promises, exempting from tax the first $5000 of earnings, until at least 2025.

"Gift duty would have to be reintroduced, and more than likely death duties and other wealth taxes as well to prevent avoidance opportunities - these are all inefficient taxes with high compliance costs.

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.

"Our existing regimes for the tax treatment of shares and other financial arrangements would also have to be revisited to avoid over-taxation, or double taxation occurring," he said.

Labour's proposed GST exemptions on fruit and vegetable are nonsense, he said.

"For example, why should apples from California be exempt from GST, while Wattie's canned peaches from Hawke's Bay remain taxable? Where is the benefit to New Zealand-produced food in that distortion?" he asked.

Mr Dunne said Labour's tax policies are "desperate, erratic and plain ignorant".

"The fact they want to put up taxes for higher income earners shows they have learnt nothing from the last decade.

"Their 1999 top tax rate increase - which led to the explosion in trusts as tax avoidance vehicles - was the biggest single tax blunder of recent times.

"The remarkable sadness of today's announcements is the Labour is now promoting policies to top even that blunder. On 26 November they will learn how costly that blunder will be," he said.

© Scoop Media

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

Gordon Campbell: On The Government's Assault On Maori

This isn’t news, but the National-led coalition is mounting a sustained assault on Treaty rights and obligations. Even so, Christopher Luxon has described yesterday’s nationwide protests by Maori as “pretty unfair.” Poor thing. In the NZ Herald, Audrey Young has compiled a useful list of the many, many ways that Luxon plans to roll back the progress made here over the past 40 years in race relations... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




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.