Capital Gains Tax response will still bring pain to many

The Government will this week report back on what it will do with a Capital Gain Tax, Leader of the Opposition Simon Bridges understands.

“The Government will take its decision to Cabinet tomorrow for sign off. National’s fierce opposition to additional taxes on New Zealanders has forced the Government to back down on many of Sir Michael Cullen’s recommendations.

“The Government will now only accept the ‘minority report’ which will mean a Capital Gains Tax on rental properties. But let’s not be fooled by this. Just because the Government isn’t kicking people in the leg, it doesn’t mean they should be grateful when it punches them on the arm instead.

“The Capital Gains Tax that Cabinet will sign off tomorrow will still be bad for New Zealanders. A Reid Research poll shows people don’t even support a Capital Gains Tax on property.

“Rents have jumped by $50 a week under this Government and a Capital Gains Tax on rental properties will push rents even higher. The Tax Working Group itself acknowledged that. Under National, the median weekly rent only increased by an average of $12 a year.

“The Government desperately wanted to tax businesses and farmers and is embarrassed to be backing down. No surprise then that it will cynically release the report on Thursday just before Easter, when most Kiwis are more focused on taking a break.

“New Zealanders should be wary and cynical about what the Government is doing. This is a Trojan Horse Tax because we know both Labour and Greens want to go further and they will if they get another term. This Government can’t be trusted on tax.

“National wants New Zealanders to keep more of what they earn. It’s not too late for the Government to drop a Capital Gains Tax completely. If they go ahead with this, we will repeal it.”

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