capital gains tax

Labour needs to pass Euthanasia Bill for CGT

In an excellent article to be published in the Listener on 16 March 2019, Jane Clifton (partner of the Speaker of the House, Trevor Mallard) looks at the current Capital Gains Tax fiasco. Jane outlines a public relations programme that would ensure that any policy proposal would be declared ‘dead on arrival’. Quote.

Capital Gains Tax (CGT) Liquefaction Schedule

? At the policy?s announcement, stand well back and let every opponent and vested interest group, and most especially the Opposition, have an untrammelled run at it for several weeks.

? Provide no helpful go-to material whatsoever for the media or public in advance that might risk clarifying how the proposals would work. Let opponents supply various half-arsed and sensational predictions instead, and depend on the media to garble those further.

?I?m sure there are some recommendations from the report we will be able to adopt.?

? On no account say anything more specific than, ?I?m sure there are some recommendations from the report we will be able to adopt.?

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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.

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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.

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Hide gives Cullen a hiding

Jacinda Ardern Taxes meme

Rodney Hide has called Cullen out on his rich prick’s tax and lucidly explains how Cullen, Robertson, Ardern etc, enabled by Peters and the Greens, want to completely screw us over.

What is the point of working hard, saving, investing, being an entrepreneur etc if the government is going to double-dip, triple-dip and even quadruple-dip? Might as well join the nephs on the couch and on the dole. quote.

Don?t buy the nonsense that Kiwis making capital gains don’t pay tax. It?s not true. Those making capital gains pay more tax than anyone.

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And so it begins…

With just one Tweet Phil Twyford has signalled the undermining of Andrew Little as leader.

screen-shot-2016-10-16-at-9-10-33-am Read more »

Labour intend to resurrect capital gains tax after they win the election

In an interview with Richard Harman, Phil Twyford indicated the CGT is still in play

There is a critical missing policy in Labour?s suite of housing announcements made over the weekend.

Though the policies would extend the current bright line test to apply income tax on the resale of homes from within two to within five years, it stops short of a full capital gains tax.

However, it is not off the table.

Housing spokesperson Phil Twyford told POLITIK last night that Labour would reconvene the tax working group once it was in Government.

?Grant Robertson?s position has been that he?s not going to rule anything out,? said Mr Twyford.

?All options will be on the table for tax reform.?

So, the cowards intend to set up a “working party” after the election, and then have that magically recommend CGT, at which time Labour will invoke the “thorough consultation” mantra and push it through.? Read more »

After slamming the government Robbo, with his next breath, says Labour will increase taxes

As I said previously Grant Robertson knows as much about finance as Jacinda Ardern does about child rearing.

After slamming the government over tax cuts in his next breath he announces Labour will fight the election proposing?tax?increases.

Labour is planning to announce tax increases before the next election to help fund its spending plans but will leave the detailed?work until it is in government.

Their spending promises are shaping up to be massive. Billions upon billions, and the only way they can fund that is by stiffing us with tax increases.

In a?pre-Budget speech to a business breakfast on Monday, Labour finance spokesman Grant Robertson said a Tax Working Group would be set up after the election to develop ways to correct?the imbalances between the productive and speculative parts of the economy.

“While we want a comprehensive review there will be some interim steps that we will announce before the election?… to ensure that we have the revenue to address pressing issues, particularly in health, education and housing,” he said.

“I think it’s?only?fair to New Zealand we go to the next?election?with some?sense?of?the direction of our?tax?policy. We?want?the Tax Working Group?to do the detailed?work but I think it’s only fair for?New Zealanders that they see the path we are on.

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The problem with Robbo’s UBI

Danyl McLauchlan writes:

I?m still having trouble imagining how a UBI would actually work. Comments on the previous posts were very informative, so please help me out some more. How would payments differ between:

  • An unemployed 18 year old living with their parents
  • An 18 year old living away from home studying at university
  • A single parent with three children under five
  • A parent with three children under five?with a partner on a high income
  • A person suffering from a serious chronic illness preventing them from working in perpetuity

Or do they all get the same amount?

By its very name “Universal” it means they all get the same. Good luck to Labour with selling that policy.

But the problems just get worse and worse. Having Gareth Morgan rant and rave all over Facebook doesn’t really help your cause.

Labour has massive problems with policy and they can lay them at the feet of Andrew Little. ? Read more »

Has the government shot itself in the foot with its “Bright-line” test?

I have come across something that more suitably qualified?people might like to comment on. I think the government has created a “vote-losing” law inadvertently.

It is this new “Bright-line” law regarding housing sales.

I was talking to a chartered accountant and lawyer about it the other day.? It appears the government may have?inadvertently created a problem whereby ANYONE making even a slight change to a trust is going to end up triggering a tax situation even though no real sale happens or money is involved.

The relevant law is Section GB 53 of the Income Tax Act 2007, below. The problem word is effect in 1(c) [underlined].

Section GB 53 says:

GB 53 Arrangements involving residential land: trusts

When this section applies

(1) This section applies when?

(a) the trustees of a trust own residential land directly or indirectly (trust residential land); and

(b) trust residential land makes up 50% or more, by market value, of the assets of the trust; and

(c) the trust?s trust deed changes, a decision-maker under the trust deed changes, or an arrangement under the trust changes, with a purpose or effect of defeating the intent and application of section CB 6A (Disposal within 2 years: bright-line test for residential land). ? Read more »

Ben Carson proposes flat tax system

Republican Presidential candidate Ben Carson has come out proposing a flat tax system for the US.

Alex Swoyer at Breitbart reports:

GOP presidential candidate Dr. Ben Carson, whose campaign is adjusting to new aides in key positions, released Carson?s?plan?for reforming America?s convoluted and systematically unfair tax code.?

?Liberty and fairness are bedrock principles of this great nation,? Carson says. ?It?s time that our tax system reflected those ideals.?

My plan for a simple, fair and transparent flat tax will not only eliminate the onerous burdens the IRS places on taxpayers, but it will grow the economy. Everyone will be on the same footing, from the largest corporation to the local family business. No one will be able to hide from their tax burden, but neither will anyone be ruined by an incomprehensible tax code. A Carson administration will push Congress from Day One to implement this plan to revitalize our economy through fundamental, common-sense tax reform. We will take the power away from the IRS and put it back in the hands of ?We The People.?

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