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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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.