Labour's tax policy formed by chuffing Kronic

Fran O’Sullivan kicks Phil Goff and Labour in the guts.

Phil Goff‘s aides must be smoking a particularly powerful brand of Kronic if they think a capital gains tax will pull in $4.5 billion for a Labour Government to spend.

It was just February after all when Goff was hosing down suggestions that Labour would embrace a capital gains tax. This week his spin-meisters planted stories that a Goff Government would pull in an extra $4.5 billion a year, all through finally slaughtering the longest-living sacred cow of the Kiwi tax system.

But if Goff throws in compulsory superannuation and says he will bump up the qualifying age for national super to 67 years, he may well get Labour back into the electoral race as a party that is prepared to tackle

Of course there is no way they are going to score $4.5 billion in extra taxation. Not only that if they do scalp kiwi taxpayers of that much it is taken out of the economy where it would do more good than in the hands of a rapacious government.

Sure the Government’s coffers will get a rather nifty boost if a capital gains tax is applied to farm sales, business sales, commercial building sales, beach house sales and indeed the residential investment properties sold on by so-called “speculators”. Of whom the Labour leader is of course one, given that he owns a “renter” in Wellington.

Back in February, when Phil Goff was telling us that Labour?had?no plans for a?capital?gains tax, he owned a renter, not that Labour is proposing to bring in just such a tax he has flicked the renter. Are these actions linked? Perhaps, but more?likely?Phil Goff is so desperate he may well be smoking Kronic to get ideas.

But it won’t have escaped notice that many New Zealand asset classes are struggling to hold value – particularly house prices, which escalated madly during the recent property bubble.

This never seemed to trouble Goff all that much during his time as a senior Cabinet minister in Helen Clark’s Government. But it’s a fair bet that his newfound resolve to milk the capital gains tax cow is at the behest of ambitious colleagues like the “two Davids” – Messrs Parker and Cunliffe. These are the men who have been in the backrooms developing a new agenda for Labour. Not Goff. Though he will be the beneficiary of their boldness.

Heh, I wonder where Fran got the “Two Davids” idea from. I still think that this plan is a cunning idea of those two to once and for all kill off Goff so they can ride in as the saviours of the glorious Labour party.

I wonder though if Cunners has thought through the capital gains aspect in?relation?to his own personal circumstances after nicking his house in a steal. Perhaps that is why Labour’s plans are not retrospective.

Labour’s whispering and sneaky hyperbole may well be their undoing. If their tax plans aren’t a “step-change” and won’t turbo-charge the economy then they will be rightly consigned to a very long spell on the opposition benches.