Some more reader questions about Capital Gains Tax

I doubt Labour can answer these, after 4 years they still have no idea what he shape of the CGT will look like.

Hi Cam & All

I have a few questions regarding CGT that I don’t think I’ve seen raised, and which certainly don’t seem to have been put to Cunliffe:

What adjustment will be made to the selling value of a property due to inflation? In other words, this tax fails to take into account inflationary pressures, and is, in effect, a tax on inflationary gains (which, as we all know, is NOT a capital gain in the real sense of the term).

Another thing that is not taken into account is the real cost of purchase. Most people buy a house using a mortgage. The real cost of the house (purchase price + interest) is much higher than the actual value of the house when purchased. Will this be taken into account when determining any capital gain? ? ?

In real terms, very few people make a capital gain on property due to the dual costs of servicing a mortgage and inflation. In real terms, most people sink far more into a property in terms of these casts than ever realise over the term of their ownership. How badly are the left trying to pull the wool over our eyes?

The final question I have is this – the left complain about the high cost of property now. What do they think will happen if they apply CGT? Who do they think the cost will be passed on to?

Good questions, but again I don’t think Labour can answer them.

There isn’t a country in?the?world where CGT has had the intended consequence that Labour claims it will…not one.

Josie Pagani was dancing on the head of a pin claiming that CGT would also re-direct funds from housing into other areas of the economy and that they will grow forgetting that one of the reasons why CGT is being proposed is to stop growth in housing…and it will also stop growth in other sectors…unless of course their statements about the effects of a capital gains tax are simply lies.

People should challenge David Cunliffe to name a country, anywhere in the world, where a CGT has lower house prices…just one will do…show us the evidence Cunliffe.