CGT is not an attack on the Kiwi way of life…

Kiwis are an aspirational lot… well, most are. Some like to sit back, do as little as possible and expect wealthy New Zealanders to pick up the tab. The expectation that ‘the rich’ will pay most of the tax is a very real one, but the problem is that New Zealand does not have a large number of really wealthy people. Far and away, the bulk of the tax burden is borne by middle New Zealand, mostly people who earn less than $100,000 a year.

Worse than that, really wealthy people have the means to be able to restructure their affairs to pay as little tax as possible. Think of activists like Bono, from U2, who preaches to the world about poverty and inclusiveness, but moved his own band to take up tax residency in the Netherlands because it pays less tax there. As we already know, activists are the biggest hypocrites of all.

Damien Grant writes at Stuff, that far from being an attack on the Kiwi way of life, Capital Gains Tax is part of the Kiwi way of life. By this, he means that we have a habit of knocking down those that work hard, do well and end up having more assets than the rest of us. You know what? I think he has a point. quote.

Simon Bridges is wrong. A Capital Gains Tax isn’t an attack on the Kiwi way of life. It is entirely consistent with it.

The one thing we love to do is live at the expense of others and this avarice, self-interest and hunger for the wealth of our betters is being pandered to by our prime minister. Only four percent of taxpayers will be impacted after ten years, she helpfully points out.

Not her voters, in other words. end quote.

The prime minister is wrong about that. All holders of Kiwisaver accounts will pay CGT on an annual basis, and that is a lot more than 4% of taxpayers. The problem is that many people simply will not realise it until it is too late. quote.

National is also on a losing battle because, once the dust settles, even most of their voters will realise that once you take out the family home few will have significant assets to be captured by a capital gains tax. end quote.

I disagree again, because lifestyle blocks and houses with rooms rented out or those used as a home office will not be exempted. Many family homes will be caught in the tax net. quote.

The fact that such a small minority will be forced to surrender up to $8 billion over the next five years puts paid to the lie that this is about fairness. It isn’t. It is a straight-out grab for the assets of a small minority in order to fuel the demands of the many.

end quote.

Again, I need to point out that many not so well off New Zealanders will pay CGT. This is most certainly not the domain of the rich alone. quote.

In order to take someone’s assets you first need an inventory of who owns what. This will be done by means of a ‘Valuation Day’, a voluntary self-audit of all assets owned.

This may seem benign. It isn’t. We are being required to value our assets in the currency issued by the state. A currency that is consistently devalued, through inflation, by two percent per annum, and is subject to additional precipitous devaluation should the whims of the sovereign demand it. A third of the nominal increase in those assets will be forfeit to the state upon realisation.

This isn’t a recent phenomenon. In 1085 the English monarch known as William the Conqueror commissioned what became known as the Domesday Book. This detailed all moveable and immovable assets, down to the last chicken, in his kingdom.
It formed the basis of an extensive taxation regime. Close to a thousand years later, in a successor state to a realm still under his descendants’ reign, we are to repeat this pernicious exercise.

All in the name of fairness. To further insulate those who, despite a cradle-to-grave welfare state, where every permutation of inadequacy is pandered to, still cannot seem to manage the basics.

end quote.

Fair comment. This attitude that ‘the rich’ should pay for everything is endemic in our psyche. I wonder how many people will be happy when they realise that their Kiwisaver accounts are being hit by CGT as well. quote.

This government is whipping up the public into a baying mob demanding that assets, accumulated over a lifetime of toil, are stripped from the productive few to fuel our insatiable appetites.

This isn’t the politics of kindness. It is the politics of envy, of greed, of pettiness. It is, tragically, the very heart of the Kiwi way of life.

  stuff. end quote.

Well said, Damien… and it is our very own Fairy Princess who is playing Robin Hood here, taking money from middle New Zealand and giving it to people who could do better for themselves… but just never will. What exactly is fair about that?