Ummmm, soz Mike Hosking, but the CGT numbers do deceive
Mike is not happy…
Mike Hosking: Numbers don’t lie, time for the Government to wake up over CGT
The numbers are new, but the theme isn’t. Business NZ has polled on the capital gains tax, and they’ve come up with pretty much what we have been saying since the whole mad idea got reheated by the Labour Party, who seem obsessed by it.Overall, 65 per cent say no. Has it harmed the Government? Half say, yes. Should it be on farms and businesses? 54 per cent say no. Houses? A bit closer, 49 per cent against 39 per cent for. Kiwisaver? 90 per cent say no.
…hold up, because while the CGT numbers might not lie outright, they certainly deceive.
While Business NZ is claiming this poll proves them right, there was another Poll barely a week ago that showed the complete opposite…
More Kiwis support capital gains tax than oppose in new poll
A new Horizon Research poll shows more people support than oppose the idea of a capital gains tax.
However, when the poll dug into more detail about the asset classes people owned, opposition was significantly higher.
The nationwide Horizon Research Poll – taken between February 28 and March 15 – found 44 per cent of New Zealand adults supported introducing a capital gains tax and 35 per cent opposed it.
A further 16 per cent are neutral on the new tax, while 6 per cent did not know.
…and are the Business NZ numbers solid? Not really…
What’s behind BusinessNZ’s claim CGT would cost $5 billion?
So BusinessNZ’s $5b – or $3.5b figure – is an overestimate?
It probably can’t be taken at face value, but that doesn’t mean a CGT won’t have big costs.
…right.
So this is just the wealthy rebelling at the idea of having to be fair.
Labour can get a CGT over the line by restricting who it punishes, and by aiming its sharpest edges towards those who property speculate. As long as Labour are prepared to fight and articulate why a CGT is fair, they can get this passed.
Lizard Hosking will say anything to stay afloat in the Wellington swamp.
A tax on capital might be worth fighting for if is was fair and actually taxed capital. It doesn’t. The capital gain is different for everyone based on taxable income. So if you already have 0 taxable income you don’t pay the gain!
Some of the richest companies and individuals pay no taxes. In OZ the more you pay for accountants the less income tax you pay, like magic!
The government are better to concentrate on removing loopholes than keep destroying wealth from those already on the taxable income.
The should also be looking at the growing illegal cash economy in NZ on drugs and laundering through casinos and property, which again is not caught by capital gains because the people operate outside of the NZ tax system and have never filed a tax return in their life!
Big Pharma, big tech and multinationals often pay close to zero taxes using legal means while taking out local companies who are negatively effected by different world rates of taxes.
https://thenewdaily.com.au/money/finance-news/2018/02/14/australias-largest-companies-corporate-tax-10-years/
https://www.theguardian.com/commentisfree/2019/apr/02/millionaires-in-australia-are-managing-a-tax-bill-of-0
https://theconversation.com/how-will-amazon-navigate-australias-taxation-system-85323
The government can pass the flawed CGT tax which is designed not to raise any additional money and make the same mistake they have for the 9 years they failed to get into government… and then we get left with the Natz again…
That pretty much echo’s my opinion. These taxes almost always end up hurting the poor (e.g. guess how much rent’s are going to go up once you slap a CGT on the rental property? Yep).
This guy will spout anything the National Party want broad casted Nationwide, after all who is paying the Piper ?
Who bothers listening to anything Mikey has to say these days.. I suppose the rich and greedy… hopefully they are being made quiet by the stampede to fairness..really he is irrelevant.
CGT is a sort of path of least resisistance in the attempt to reduce inequality. Whether it is a particularly effective path though is doubtful. However capital gain is an easy target, and people (and politicians) will generally go for the easy target, which may explain why it is so popular overseas.