Can't have it both ways

Labour are busy spinning that tonight’s One News poll isn’t anything to do with their capital gains tax grab plans.

We can safely ignore their spinning. They did the soft launch on purpose. It was designed to allow their capital gains tax plans to register in the polls, they planned it to cover both 3News and One News polls. Little did they know that 3 News went early into the field.

During this past week there has been more than enough information seeded and leaked by Labour for people to form a view and from all indications coming in via the tipline it would suggest that Labour and their capital gains tax have gone down like a cup of cold sick.

Labour deliberately leaked their policy to affect the polls, now the results appear to not be to their liking they are trying to claim that the people didn’t know the detail.

That of course forgets that Labour’s crippled campaign manager has been imploring the troops to avoid detail because they think that people aren’t interested in the detail. The bad news for Labour is that detail is required and wanted by the public, pity they don’t know the details so they can discuss it.

Can’t wait till 6pm tonight on One.


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  • nigel201065

    Hi Cameron,
    Did I hear Mike Williams correctly on Q+A today say that Little had over 1000 CTU members in Palmerston North and they are going to help Labour in the elections.
    I thought Labour has always maintained that the CTU was not part of the Labour party and that they are not joined at the hip

  • lowercaseusername

    Some unanswered CGT questions in no particular order:

    Why are outlets like the SST jumping up and down about how this will redirect investment into ‘more productive areas’ when even casual share investing is now going to be taxed, and property and share investments will be taxed the same rate?

    Has anyone pointed out that Labour’s intervention in the AIAL/Canadian Pension Board deal and their failure to prosecute anyone for the (unpunished) Cullen-office pre-Budget leak about Telecom that wiped hundreds of millions of dollars off one of our most widely-held stock severely undermined confidence in the market they seem to want to tell us off for not investing in?

    Why did Guyon Espiner say that “The numbers add up” on Labour’s tax plan without pointing out that it will be fiscally negative for five of the next thirteen years – effectively an entire government term (by Labour’s own numbers!)?

    Why are property investors who are currently caught by the Income Tax Act’s provisions regarding development that would be otherwise taxed at their marginal rate effectively being given a tax cut, and why is no one pointing this out?

    Why hasn’t Labour included costing for things they’ve highlighted in the past, like restoring Kiwisaver tax credits, and why isn’t anyone asking about how additional revenue will be raised to pay for it?

    Given that Labour will need the support of two other parties to form a Government, has anyone pondered the fact that both NZ First and the Greens have higher tax free brackets than Labour, and the election outcome could result in the proposed $5,000 bracket being closer to the 10% advocated by the Greens and NZ First?

    Why does the cost of the tax-free $5,000 bracket rise in Labour’s projections by more than $1bn over a thirteen year period?

    Where in Labour’s figures does it account for the increased revenue from asset sales in the short term and not over a thirteen year period? Are they also including the additional interest costs of not paying that debt down quicker?

    Can the cheerleaders of this tax (the SST for one) answer any of these questions?

    What are “other anti-avoidance measures”?

    Why is Labour scared of being drawn on detail on a cornerstone policy?

  • ltchop

    Hey lowercaseusername one for you
    Why is Bill English ( after that matter wa’il) running like hell this morning trying to change the subject this morning – the list of CGT supporters keeps growing – it’s a no brainer like compulsory super – it’s time is coming !

  • lowercaseusername

    It’s time was a long time ago – when house prices were rising and before they became (as Labour now claim) unaffordable and overvalued. If anything, this makes life easier for property investors – if house prices sky-rocket, then they still make far more tangible gains than they will on an NZX50 investment. If prices go down, they can claim a capital loss, whereas before they would just wear it themselves. If anything, Labour has transferred some of the risk to the state.

    I suspect Labour was happy with the construction boom and the ability to make hay out of apprenticeship schemes. I can’t take Labour’s suggestions of a CGT serious now given that they’ve ignored many opportunities in the past to put one in place. Sorry, but the damage has been done, and transferring strategic risk to the taxpayer will create a huge mess.

  • ltchop

    Guess that’s long winded speak for yes they are right … better now than in another 10 years ……… hey wha’il where is your ‘rules of politics’ ? am sure the handling of this release has ticked a few boxes ….

  • lowercaseusername

    No, they aren’t right. They missed the boat by a decade. That short enough for you?

  • ltchop

    Property speculators have been around since the caveman calved out his first house ….. so we missed an decade of income …. to believe that the same cycle won’t come again is well – just silly.

  • lowercaseusername

    Economies move in these things called ‘cycles’. Huge value upswings are usually followed by a similar one in a down direction. But don’t let trifling details like facts get in the way of that. But hey, if you’re happy to pay out capital losses on property bought at the height of a price boom, then more power to you and investors.

  • ltchop

    Precisely the reason why we need a CGT …. I rest my case …..

  • gazzaw

    Won’t we have to wait on the ‘expert panel’ to explain the detail? Both Parker on Nation & Silent T on Q&A reiterated that this morning? Where was Goofy by the way? It would be great if Liabore could at least tell who will be on the ‘expert panel’.

    • We shold just vote for the “Expert Panel”, Labour are rooted.

  • lowercaseusername

    Ltchop; A capital gains tax implemented before values fall results in a loss. You’d be just giving money to property investors. Stop and think about it for a second.