With critical friends like these

Selwyn Pellett is one of Labour’s “critical friends” and boy is he being critical:

I’m not sure this will go down too well with the cloth cap pinkos, especially the student bludger class.

Cactus Kate schools the  corporate benny on the realities of politics:

I predict that Selwyn Pellett will be an absolute pain in the arse for Labour’s committee, mainly because he thinks aloud on Twitter. Happy days.

 


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  • Blair Mulholland

    Taxing capital gains is quite possibly one of the most ridiculous ideas the left have ever come up with since Pol Pot wanted revenge on the smart kids for losing the 1955 Phnom Pen Spelling Bee.  I can’t see what purpose such a tax serves other than to kill jobs.  You are already taxing the profit someone makes on their company, and taxing their income, and yet you want to tax them for making the investment itself as well?!  Really REALLY fucking stupid – how do these people think jobs get created in the first place?  Someone takes a risk and makes the investment and employs those people.  If they know that when they create a company they can’t sell it for a profit without losing half of the profit, they factor that into whether they bother creating those jobs in the first place.  A CGT is about as anti-worker as a Labour Party can get, and it only advantages the crony capitalists who are already wealthy enough, or enough in the pocket of Ministers, not to care.

    • Mully

       I suspect Labour will water their CGT down to “rich prick” property investors only. Probably with big enough loopholes to drive a truck through. (assuming they sort their shit enough to actually form a Government)

  • maimai

    is this the same guy ‘the duck’ calls ‘sheep’?

  • Peter Wilson

    Actually, it’s quite hard to argue against a CGT on the family home. No business profits, or risks to consider, or even employees. I don’t know how much, say, 1% of every house sold going to the government would raise, but on a $500k home, $5,000 is hardly going to break the deal.

    It would keep prices down you would think, as people would stay in their homes for longer, making it easier for younger people to get into property.

    • Euan Rt

      It would more likely raise house prices and rents. Not smart.

      • Peter Wilson

        Why? I have a suspicion that it wouldn’t affect people’s buying decisions a heck of a lot. People’s choices for the family home are more dictated by family circumstances, such as additions to the family or moving for job reasons.

        It’s a bit like the argument the smart people will leave NZ if they can’t get 500k salaries here. Why not try it and see? Because the smart people decide on the 500k salaries maybe….lol

  • rouppe

    The CGT is being touted as moving money from being invested in residential housing (apparently dead money) and moving it to ‘the productive sector’.

    Not one of the proponents of this idea have described what they believe ‘the productive sector’ to be, but for mums and dads it can only be listed companies.

    Not one media organisation has demanded to know from Shearer et al what Person A paying Person B $10,000 in consideration for their shares is going to do to increase ‘productivity’.

    • Bunswalla

      Not sure you understand how investment works. In order for there to be shares they have to be issued in the first place e.g. an IPO. People invest in the ideas and business model in the hope of getting dividends and capital gain, and the company gets much-needed capital to expand its business.

      That’s what the productive sector is. 

      • Peter Wilson

        Surely the productive sector are industries actually producing goods such as industry and agriculture, not just any old public company.

      • rouppe

        Really…. Reckon you understand it Bunswalla…?

        Lets take TradeMe. IPO only a few months ago. Where do you think the money that people paid for the shares went to? It certainly didn’t get invested in TradeMe, making it somehow magically ‘more productive’. It went to Fairfax. It was a straight exchange of money for shares from Fairfax to the buyers of the IPO.

        Lets take Goodman Fielder, since it ‘produces goods’. If I buy shares in GF, the money doesn’t go to GF, it goes to the person who sold me the shares. No new shares get issued, no injection of capital, GF doesn’t produce more, or produce less because of it…

        So Mr Knowitall Bunswalla, how does me buying shares make the compny, or NZ Inc, ‘more productive’…?

        And Mr Wilson are you suggesting that we should also legislate to identify which companies are ‘productive’ and which are not? Since ‘not just any old company’ can be part of ‘the productive sector’…

      • PM of NZ

        So all I have to do is to convert my non-productive residential investment with its so called dead money to the productive sector, is create a company and issue public shares?  Sounds OK to me.  Business model the same (residential housing), but people now want to give me heaps of money to buy more houses.  Very productive!

  • jay cee

    look at australia they have it and kiwis are going there by the plane load to live. so it can’t be all bad.

    • Gazzaw

      jay cee – what the lefty media don’t tell us about are the plane loads coming back. The only state with a growth rate significantly above NZ is WA & that largely revolves around the mines & its associated industries. Young Kiwi blokes are flocking there & who would blame them for $100k a year for semi-skilled work. It’s bloody hard work though and a lot of that $100k ends up pissed up against a wall. NSW & Queenlsand growth is 2-3%, Vic 0% & SA  -1%. Tassie didn’t rate. Those were figures from ABC TV last Tuesday night. Mate, I do business with Australia and life for the average joe 
      is tough over there particularly for the unskilled & semi-skilled. Housing prices in Sydney & Melbourne leave us for dead.

      My advice to any Kiwi family is not to move without a confirmed job, check out the taxes plus the benefits that you are going to lose. Remember that your NZ$ savings will immediately lose on third on conversion and that there are no safety nets until you have been paying taxes for two years.

          

      • ConwayCaptain

        Gazzaw

        Very true.

        I distribute books for a small publisher in Melbourne and he says that there is a 2 tier economy.  WA and Qld doing blody well and the rest having industries close down and shops shutting.  Myers and David Jones arent doing too well, they are now debating whether to keep the Aus car industry going as it is costing MILLIONS to subsidise the jobs.

        Thje Aus Defence Shipyard in Adelaide is bloody expensive and it would be cheaper and more efficient for Aus to have its warships built o’seas.  The Collins Class is a disaster.

        As you said your saving lose 1/3rd and the prce of houses in Syd/Melb are ridiculous 1 million for an ordinary house.

  • Grandstream

    This is great news for greens and minor parties !  Selwyn is no doubt still angling for a safe list position on the labour list

  • parorchestia

    We have a de facto CGT already.  If you intend to make a living by transacting on capital gains you may be required to pay tax as such actions can be considered income.

    I would like to see this better codified and applied rather than relying on the Commissioner’s determination.

    Almost everyone else has a capital gains tax, so it can’t be all bad!  In fact, the old rule applies that if you, as a nation, march to a different drum to everyone else you had better get your hearing checked.

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