Venezuela, we will be your socioeconomic compadres soon

Photoshopped image credit: Technomage

At the moment, some countries share the prestige of not having a Capital Gains Tax: New Zealand, Singapore, Hong Kong, Malaysia, Switzerland, Cayman Islands, Monaco and Belgium.
However without further investigation, it is not known if those countries have a CGT by another name.

New Zealanders like to say that we do not have a Capital Gains Tax. But income tax can be assessed on profits made from the sale of property (buildings and land) that was bought for resale. This taxation is widely avoided/evaded as intent “to make a profit” at the time of purchase has to be proved, which is difficult to enforce legally.

The IRD have enforced the law in some cases. For example, they gathered $106.6 million by checking property sales in Queenstown, Wanaka and some parts of Auckland as far back as 2004. This makes it seem like a CGT by stealth, but unfortunately for the Marxist globalists it is has proven too difficult to enforce widely.

When the Coalition of Losers introduces their version of the CGT they may come up with some “lighter” versions of the CGT to saturate the MSM with.

For example:

  1. They could favour certain industries or sectors such as small businesses and exporters like dairy, fruit and wine. This of course, would change as time goes on.
  2. They could state that CGT will be eliminated when property passes on to family members, thus avoiding a death tax by stealth.
  3. They could give some accounts favourable tax status, for example, savings and shares, thus avoiding the double taxation on these investments.
  4. They could suggest selling assets at a loss that can be used to offset other gains realised in the future. This, of course would lead certain people into making sham transactions to reduce liability for tax.
  5. They could waive the tax if the asset is given to a charity.
  6. They could defer the tax if the seller of an asset puts the funds into a “like-kind” asset but such an idea would have the potential for loopholes within loopholes.
  7. They could create an opportunity fund into which capital gain income is recycled into the economy. This could create opportunities to invest in and develop lower income areas which traditionally get ignored by investors. It is, however, Socialism 101 with wealth redistribution being the aim.

The MSM could use these “sweeteners” to introduce their Socialist Taxation System, that is, a Capital Gains Tax.

It is hard to predict the next step after a CGT. It seems that the CGT is a springboard for additional enforced taxation of many kinds.

The gathering of asset valuations through the CGT process will allow the government or their agents to asset test against your pension/superannuation but perhaps more importantly, to increase your current rate because you will be classified as one of the infamous “rich pricks.”

But fear not, just before the next election, Winston will ride in on a “white horse” and cry, “Neigh/Nay to Capital Gains Tax, you know I was opposed to it all along”. Voters with short memories will capitulate and give the 5% list vote needed to New Zealand First to allow the Coalition of Losers to be re-elected.

However, true to his own political history, Winston will subsequently allow the CGT to come into force after the 2020 election.

Hola! Venezuela, we will be your socioeconomic compadres soon.