The CGT will be racist


Louis Houlbrooke
Communications Officer
New Zealand Taxpayers’ Union

Will you and your family be affected by the capital gains tax?
Sir Michael Cullen has been trying to frame the proposed capital gains tax as a tax on the rich, but our researchers and designer have created the graphic below showing just how many different people will be whacked by the CGT. You can share a version of this infographic with your friends on Facebook here.

The capital gains tax will be racist

The Finance Minister says the Government hasn?t committed to a full exemption for iwi under the proposed capital gains tax, but he?s ignoring the existing issue of the lower iwi tax rate.

Even if there are no strict tax exemptions for iwi-owned authorities, the current capital gains tax proposal will see iwi-owned businesses pay a lower rate ? 17.5%, compared to 28% for other businesses.
In other words, the existing special tax treatment of iwi would be carried over into the new capital gains tax, deepening the unfair commercial advantage held by iwi.
The Taxpayers’ Union position is clear: tax rates should be lower for all New Zealanders, not just iwi!

New Zealand?s version of the Clinton Foundation?

This week we welcomed the establishment of the Helen Clark Foundation. New Zealand needs more independent voices on policy to hold the politicians to account.
However, it?s alarming to see the Foundation has ?partnered? with AUT, suggesting it uses taxpayer resources. It would be a disgrace to see the Helen Clark Foundation follow the Clinton Foundation in bludging off the New Zealand taxpayer.

Policy think tanks can always fundraise from New Zealanders on a voluntary basis ? that?s how the Taxpayers? Union operates!
We?ve submitted a series of information requests to AUT to establish just how much taxpayer help Helen Clark is getting for her thinly-veiled political activities.?and it gets special tax treatment!

We were also surprised to learn that the Helen Clark Foundation is a registered charity, meaning its donors get special tax treatment, giving it a financial advantage over other political groups.
The Charities Board has ruled that conservative causes such as Family First and the Sensible Sentencing Trust aren’t charities ? so why does Ms Clark’s left-wing group qualify?

The Foundation?s self-declared focus is on ?public policy?, with particular interest in inequality and women’s issues. In other words, it?s a political lobby group and should be treated as such under the tax system.
As it stands, it looks suspiciously like it?s only lefties that benefit from charitable status. We?ll keep an eye on the Helen Clark Foundation, and will bring any evidence of its political focus to the Charities Board.

More hypocritical spending on climate change junkets

The latest figures on Ministerial travel spending reveal that James Shaw (the Minister for Climate Change) spent more than any other government minister on international travel in the last quarter.
Clearly, the Climate Change Minister is just as hypocritical as the Ministry for the Environment, which claims that flying less is ?one of the most effective climate change actions you can take?, despite your humble Taxpayers’ Union revealing in January the department spent $770,000 on international travel in fifteen months.
What is it with politicians and bureaucrats spending our money on jet-setting around the world to promote climate change? How come junkets are more worthy than protecting the planet?