It’s trying to polish a turd

Family home for sale: Herne Bay, $2,250,000 – no CGT

We need a fairer system goes the cry. The rich prick property investors must pay their share. Family homes must be exempt because that is a definite vote killer. Heather du Plessis Allan chucks in her tuppence worth. Quote.

We’re not getting capital gains taxes on everything. That’s just not going to happen. That’s political suicide.

If Labour is smart, it will introduce just one CGT: a tax on investment properties. End quote.

Rich prick landlord rental property for sale: Tokoroa, $195,000 – CGT applies

Yes, let’s slam the little guy with his $200k rental in Tokoroa providing a valuable service to those who need a home and cannot afford to buy. Quote.

Introduce is not really the right word. Extend would be better. Which is why it’s the best compromise for Labour. Because it already exists. We already have a bright line test. Any investment property sold within five years of purchase already gets whacked with a capital gains tax. End quote.

The property speculators who buy, slap on a coat of paint and flick for a profit are already caught by the bright line rule, so why the socialist demand for more? If a property is held for five years or more it is clearly not for a quick flick speculative profit. Quote.

So, extending that beyond five years wouldn’t be an enormous shock. It would just be more of what we already have. Sell your rental any time, not only within five years, and you’d cop the CGT. It’s easier to take a freezing plunge, when you’re already a bit acclimatised to the cold water. End quote.

But, Heather, how is it ‘fair’ to exempt the pretty unremarkable looking Herne Bay villa selling for $2 mill and yet tax the Tokoroa renter selling for $200k? Quote.

Which makes you wonder why in God’s name Labour is taking so long to simply rule out everything else.

They could. They clearly don’t want to introduce a CGT on farms or even on small businesses. So why not just out and say it.

Instead, we face another four weeks at least before Labour announces its decision.

Four weeks is a long time to leave people freaking out about the CGT, wondering whether to put the rental on the market, whether the farm will be viable, whether there’s enough in the KiwiSaver account after tax to enjoy retirement.

Four weeks is a long time to leave people scared. And angry. The anger at Labour has been off the charts this past week.

You can tell that the reaction has probably taken Labour by surprise. They wheeled the PM out to tell people to chill out. That’s like putting on a scary movie and telling the kids not to scream.

Labour must be relying on the fact that people will breathe a sigh of relief and forgive them once they rule out most of the proposed capital gains taxes.

It’s a big risk to take. […]

So while we watch the clock for Labour’s decision, two words are settling into our brains right next to each other. Labour. Tax.

Dangerous move.

Why the four-week delay?

Well, what else can Labour do? It’s trying to polish a rock. End quote.

I believe that the correct expression is “It’s trying to polish a turd.” Quote.

The swag of CGTs were a stupid political idea to start with. Now, Labour might have changed its mind. So, it needs time to explain why the hell it spent more than $800 a day for months, paying 11 people to put out a tax report it will barely touch. […]

But time creates a vacuum and a vacuum is often filled by imagination. And the imagination of how much you’d have to pay in tax is not flash.

As for the best compromise position Labour could tax ? which is a CGT on rentals only ? it’s not perfect. A tax is a tax. It could be 33 per cent on everything. It could be 5 per cent on just one thing. But few people will want to pay it. End quote.

“It’s not perfect” – It’s not fair either, nor is it sensible. In fact, it is barking mad to punish the rental market landlords when there is a housing crisis ‘due to nine years of neglect’ – being quadrupled due to a few months of Twyford’s meddling. Quote.

Will they vote for it in 2020? End quote.

A Newspaper

Let’s hope not.

Properties above snipped from Real Estate websites on 4 March.