Goff on CGT Tax: Not an immediate priority

Phil Goff says a CGT “doesn’t immediately appeal to us as a key priority for any incoming government.”

He said that back in September 2009. So what has changed now. Is Phil Goff not a man of his world on capital gains tax? Or is there more to this than meets the eye.

Interest.co.nz seems to think so:

Labour’s pending capital gains tax policy will cover more than just investment properties, with the sale of businesses, shares and other individual assets to be included as well, Radio New Zealand reports.

The tax will exclude the family home, and would  not be retrospective, meaning the value of a capital gain would be assesed from when the policy was implemented, Radio NZ reported, citing Labour Party sources.

Labour is tipped to introduce a tax of 15% on capital gains.

Tax Working Group figures from 2009 show a capital gains tax of about 30% on all assets other than owner-occupied housing would raise about NZ$4.5 billion a year once revenues peak. Evidence from Australia showed it took about 15 years for revenues to peak. A 15% tax would therefore be raising just over NZ$2 billion a year at its peak.

If it is to be one everything then Labour has really just committed suicide. At 15% it won’t even get close to collecting the projected $4.5billion that labour needs, and by not being retrospective means that the 15 year implementation would probably be more like 25 years.

David Cunliffe and David Parker have concocted a cunning plan to feed electoral rat poison to Phil Goff and kill of any possible chance he had of gaining the Treasury benches leaving the field clear for their dream team to “save” Labour. With his crippled campaign manager diverted attacking a blogger in an asymmetrical war he can’t possibly win, Goff was faced with little option other than to eat the rat poison.

This photo seems prophetic.

Cunners and Parker are laughing as they watch Goff try and sell the electorate and run in an election proposing to tax voter some more. Labour want to sock everyone with more tax, stifle the only investments avenues they have and at the same time refuse to allow Mum & Dad investors other opportunities like investing in power companies and other infrastructure assets. Meaning their investment options have just tanked and leaving them with only one option which is to give all their money to the government to spend on other people.

 


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  • gazzaw

    The photo says it all. Is Goff totally naive allowing Cunliffe to stand behind him?
    ‘Et tu Brute’ comes to mind.

  • jabba

    I would suggest they have written up a tax plan in pencil .. then, drop some hints about certain possibilties .. then, have the backroom flunkies making changes on the run based on the negative feedback .. then, produce a plan that is tammed down and totally usless

  • Doc

    I can just imagine the text line to New York at the moment. Helen must be beside herself. :D

  • Mr Blobby

    Political suicide.
    In Australia people just upgraded and invested in their houses rather than invest in an investment property.
    The same will happen here. How much wealth has been lost in other forms of investment that are as solid as air?
    One would think that they don’t won’t to get back into power. National and the Greens will dine out on this for years to come. The Maori party will want Maori to be exempt for them to support it.

  • thor42

    Rather than trying to tax the bejeezus out of everyone, Liarbore should be doing everything they can to get losers off the dole and sickness benefits. Of course, those are their voters, so they will never do that.
    There is a **shitload** of money to be saved by getting people off benefits. That *and* putting a time-limit on benefits as well.

  • titanuranus

    Oh my , CGT lasted 3 days and now backtracking already,basing your election promises on which ever way the wind blows got to be a winner come november.

  • arnie

    Labour should back date the tax to around 2 years ago, then of course those persons who owned other properties could claim their losses, even if it is not back dated there will be very little capitol gains achieved in the next 5 years. How will they achieve their spending excesses without it.

  • P1LL

    Cam we know Goff is a smile and wave non event . lets find out who this asshole is
    http://www.stuff.co.nz/sport/5251421/Identity-suppressed-sportsman-granted-bail

    • It is Kermadec Crunchy-Wasp again.

  • reid

    …Goff try and sell the elec­torate and run in an elec­tion propos­ing to tax voter some more

    Yes it’s looking like a horrendously steep Matterhorn-like thing isn’t it, this election, to Phil.

    Still they say a week is a long time in politics and Phil hasn’t got many left so let’s hope, for his sake, they’re all very long ones indeed.

    And Phil et al don’t think conservatives have hearts. The big sillies.

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