Kiwis and the tall poppy syndrome

“Simon Bridges is wrong. A Capital Gains Tax isn’t an attack on the Kiwi way of life. It is entirely consistent with it,” so opines Damien Grant in a recent column. It is an interestingly different way to look at the CGT issue, even if Damien seems to misunderstand how pernicious this tax will actually be. Quote.

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.

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.

Clearly Damien has not been keeping up with the excellent posts on Whaleoil where Christie clearly spells out that very few family homes will actually be exempt. I would hazard a guess that Damien probably claims home office expenses for his writing, so he will be caught in the CGT web. He just hasn’t realised it yet. 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.

It rather appears that the minority will be the welfare recipients who live off the state their whole lives. They will be the only ones exempt from CGT.


Where have we seen this before, New Zealand?

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.

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.

End Quote.