David Shearer on Capital Gains Tax

The more I look at the video of David Shearer’s Q+A interview the more I think it was a train wreck.

Far from providing clarity on any issues or any policy in fact it clouded anything and raises the possibility that he certainly doesn’t know what he is talking about.

Take his answer on capital gains tax:

We’re not putting our money in the profitable sector; it’s going into the property market because we don’t have a capital gains tax that will help us direct money into those areas. And if you’re wanting to raise money, then at least put money into businesses- invest in businesses through the incentives of capital gains, and that brings, obviously, money into the government as well. 

So let’s get this straight…it takes a bit to unravel. David Shearer and Labour are wanting to bring in a capital gains tax. They want this because it will apparently “cool” the housing market despite the evidence world wide that this NEVER occurs. A quick look at Australia, who are close enough, will confirm this.  However since people will now get taxed out of housing because of Labour’s CGT they will now, according to David Shearer in vest in other areas like businesses which will grow in value, ie gain capital, which Labour will now tax so they can spend it like drunken sailors on shore leave…but the capital gains tax which Labour is counting on to stop investment in housing will also encourage investment in businesses.

Whew…I think I got that right.

I wonder what the BlaBlaMeter says about that:

Blablameter

 

Yep, Shearer is talking rubbish.

 


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  • Gazzaw

    Encourage investment into profitable businesses such as Mighty River Power maybe? I’m not sure that he means that either.

  • I notice putting your money into property is ok when HE does it

  • Pete George

    He’s showing more and more signs of not having a clue about many things. He is swotting up on Labour policy talking points an recites them at any opportunity, but comes badly unstuck when he tries to apply bits of them to things he doesn’t know anything about.

    • BJ

      He doesn’t know very much about anything at all – that is most obvious. He might have bluffed his way through a job interview but surely he cringes to see his lack of performance on TV and Radio.

    • Lion_ess

      What do you mean by showing signs – Shearer has never demonstrated any political nous that I’ve seen. If he’s the best they’ve got, John Key will be laughing all the way to the next election.

  • Liberty

    Who is this we “We’re not putting our money”
    More socialistic dribble from the pinkos

    • Patrick

      Your money IS their money….communism is alive & well in little old NZ

  • boristhefrog

    I’m surprised the Bullshit Meter scored it so low…

  • AnonWgtn

    It will by their admission take 15 years from the introduction of their CGT to actually achieve a positive result. Adminstrative staff costs will take away most of the intended product – more Public Servants in the IRD and the courts as arguments take place as to the interpretation.
    I am sure that should I wish I could get round it anyway, as can most decent accountants and solicitors.

    • Agent BallSack

      SO once again policy that is poorly designed has the very opposite effect and will only really affect lower/middle income earners.

    • Muffin

      I’m an accountant, labour getting in would be great for us!

  • Steve R

    Well he is the expert ,don’t forget . He after all is wise enough to keep his vast fortunes ( I did note yesterdays pause at the possibility he had a million in his “family” account ) hidden away in such finically wise countries as the good old USA . Just take a quick note , one of the main reasons the nz dollar is so high is the fact that the USA are doing so very badly .

    • Mr_Blobby

      It might be a bit late but my advise is to get into Swiss francs.

  • blokeintakapuna

    I’m so looking forward to the leaders debate! Probably about as much as Labour are not.

    Bring it on… And pass the popcorn!

  • Mr_Blobby

    Really invest in business.

    How about some examples of what sort of business to invest in, you know something that will grow and you make your profit when you sell it.

    News flash num nutts. If the economy is not growing there will be no business growth or employment growth. As we are expecting no growth for the next 5 years, assuming that the US and EU don’t collapse, and we follow them down.

    How about being part of the solution and not the problem.
    How about less BIG Government.
    How about less TAXATION.
    How about less laws and compliance costs.

    If you want economic Growth stop hobbling the economy with ever more TAXes.

    Halve the TAX take and watch the economy grow.

    • Mr Blobby perhaps you may want to check the figures – far from “as we are expecting no growth for the next 5 years” we are actually expecting plenty of growth during that time.

      The NZ economy has been growing steadily for 3 years, since the Labour party recession of 2008/09, and the economy is 15% larger than when Mr Key took office (despite that recession).

    • Muffin

      Has he ever been in business? It’s bloody hard work!

  • Agent BallSack

    I went away and thought about this a bit. Shearer wants to build 10,000 new houses per year, approx capital gains tax on each house 20k works out at 2 billion pouring into the government coffers per year. Of course he fails to mention Government will be excluded from paying capital gains on any house they sell so gain to the country = NIL.

    John Key goes to China, has a afternoon talking to the Chinese PM and makes the country 20 billion dollars. Hmmmm hard to guess who is the best PM for this country?

    • Yes you have hit the nail on the head Agent – John Key is out there doing the best for NZ; this is probably why he simply ignores all the opposition media rubbish back home, because he is bigger than that.

  • johnbronkhorst

    I post this link, every time an IDIOT like shearer promotes CGT>

    http://www.scribd.com/doc/32499327/CGT-for-Australia-Alan-Reynold

    Other things re investing in businesses ….
    Franchising,the key reasons to invest in a franchise.
    1. Follow a successful business model, program and training.
    2. Make good money by just running the day to day, no strategic head aches (supply, advertising etc), you pay for those with your franchise fee.
    3. and here’s the kicker for CGT, you make capital gains by building a successful franchise when you sell it.
    So on the down side you are restricted as to profit margin, product diversity, change of direction and under labour…saleability of YOUR business.

  • rouppe

    I always ask the following question when Labour say we should “invest in the profitable sector”.

    The question is: “By profitable sector do you mean the share market? Because there is no way in hell I am going to risk my hard earned, over taxed money on some risky venture dreamed up by a spotty 20 year old.”

    Usually the answer is yes to which I reply… “If I buy shares on-market, where does the money go?”

    The answer of course is that it goes to the person who sold me the shares. None of it goes to the company. None of it can possibly affect the profitability of that company, what it produces, how it produces it or how well it will sell. Because the money goes to another private individual, which means there has been no actual increase in money available to the company.

    Labour just don’t get that. If they act to make it more difficult to buy into one sector (property) they might drive money to the sharemarket, but all they will do is drive a bubble in share prices instead of house prices.

  • Patrick

    Shearer recommends offshore bank accounts as the most effective tool for accumulating money, apparently you can avoid all taxation liabilities

  • Sir Cullen’s Sidekick

    I am surprised that the nasty National supporters are making fun of Sheep’s vision and pretending they don’t understand what Sheep is saying. Let me put in simple language for you. He says – “I will tax the hell out of the property sales. I will impose a CGT on property sales. This will cool the market and people will then move out of property speculation and start to invest money in other ventures”.

    What is wrong with that? Sheep thinks CGT will solve all the problems of New Zealand. Sheep is expecting a revenue of about six billion from CGT and Rich Prick’s income tax.

  • Phar Lap

    Its more than a CGT It will be an inheritance tax.Thats the part that the commie greens and Lie-bour wont talk about.Joke party greens want it to start at 15% then be inflation adjusted.Lie-bour will carrot the family home, as being exempt, once it has been inherited ,then sold, the CGT will come in, under the punitive tax grab,.In fact there will be no exemptions .

    • Orange

      Is that one of the reasons the marriage thing is being pushed through, a coming inheritance tax?

      • Phar Lap

        Aint that the truth.

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