It is not often one can credit the political left with honesty but Labour earns a badge with the ‘leak’ of their Capital Gains Tax policy. Not only that but, to be honest, it has been quite cleverly designed to the point one wonders, suspects even, that experts outside of the Beehive might have been involved. That however is where the plaudits end and reality sets in. It pays never to take policy from the left at face value.
Jordan Williams from the Taxpayers’ Union says it is politically smart to tie it to health funding, including three “free” annual GP visits, and he’s right. He says it will be used to frame those opposing it as ‘anti-health spending’ and play to public concerns. Jordan describes it as a policy that won’t scare the horses; however, a further expansion of the policy down the track will be difficult to stop because, effectively, the said horses will have bolted.
Experience the world over shows these taxes grow in scope, eventually morphing into a death tax, including the family home. The chances of that happening here are relatively high and for that reason alone it should be opposed. Another negative is that the proposed tax fails to adjust for inflation. Even if you support a CGT, it is unfair for someone to have to pay a 28 per cent tax on an asset that has not been inflation adjusted.
It’s not hard to work out what the game is here. Labour has introduced a tax that most people won’t have to pay but will benefit from a ‘supposedly’ improved healthcare system with three free GP visits as a bonus. That’s the clever bit and likely to go down well with the majority of people. Most though will probably fail to see the red flags waving in the distance and warnings of inherent dangers down the road.
The left are obsessed with tax: always have been and always will be. They don’t understand productivity, having never been involved in business, and they can’t think beyond tax as a means to increase revenue. Having little appreciation of economics, they don’t realise that a country can’t tax its way to prosperity. A country’s wealth is generated by export earnings, not from taxing people’s wealth. Wealth to the left simply means an opportunity for another tax.
If we let this seemingly innocuous tax in, you can be sure that at some point Labour will introduce a tax on wealth. The problem with this approach is, as Margaret Thatcher once said, “You soon run out of other people’s money.” Introducing these taxes has consequences. It stymies the enthusiasm of people’s ambition to create wealth for themselves. The follow on from that is that anyone who has managed to do so will up and leave, taking their wealth with them.
This is happening in the United Kingdom right now. Thousands of billionaires have ‘upped sticks’ to avoid Chancellor Rachel ‘from accounts’ Reeves’ plethora of never-ending taxes, with more to be announced in her upcoming autumn budget. The left dine out on the ‘politics of envy’: their entree, main course and dessert all rolled into one.
Coupled with their excessive ‘borrow and spend’ philosophy, this is how they manage the art of economic destruction every time they get into power. Balancing the books to them is making sure the pile on the table doesn’t fall off. We can be grumpy with the current coalition, but they are, metaphorically speaking, still picking up the books that Grant Robertson left on the floor. You can be sure none of them were on the topic of economic responsibility.
Yes, they’ve been clever – probably with expert advice – but don’t be fooled. This effort might look just like a pothole, but we will see huge slips appearing as they gouge into your pot of gold.
Julius Caesar once said “Beware the Ides of March”, knowing his enemies were plotting his overthrow. I say beware the Ideas of Labour, because they are plotting our overthrow.
JC is a right-wing crusader. Reached an age that embodies the dictum only the good die young. This article was first published HERE
Experience the world over shows these taxes grow in scope, eventually morphing into a death tax, including the family home. The chances of that happening here are relatively high and for that reason alone it should be opposed. Another negative is that the proposed tax fails to adjust for inflation. Even if you support a CGT, it is unfair for someone to have to pay a 28 per cent tax on an asset that has not been inflation adjusted.
It’s not hard to work out what the game is here. Labour has introduced a tax that most people won’t have to pay but will benefit from a ‘supposedly’ improved healthcare system with three free GP visits as a bonus. That’s the clever bit and likely to go down well with the majority of people. Most though will probably fail to see the red flags waving in the distance and warnings of inherent dangers down the road.
The left are obsessed with tax: always have been and always will be. They don’t understand productivity, having never been involved in business, and they can’t think beyond tax as a means to increase revenue. Having little appreciation of economics, they don’t realise that a country can’t tax its way to prosperity. A country’s wealth is generated by export earnings, not from taxing people’s wealth. Wealth to the left simply means an opportunity for another tax.
If we let this seemingly innocuous tax in, you can be sure that at some point Labour will introduce a tax on wealth. The problem with this approach is, as Margaret Thatcher once said, “You soon run out of other people’s money.” Introducing these taxes has consequences. It stymies the enthusiasm of people’s ambition to create wealth for themselves. The follow on from that is that anyone who has managed to do so will up and leave, taking their wealth with them.
This is happening in the United Kingdom right now. Thousands of billionaires have ‘upped sticks’ to avoid Chancellor Rachel ‘from accounts’ Reeves’ plethora of never-ending taxes, with more to be announced in her upcoming autumn budget. The left dine out on the ‘politics of envy’: their entree, main course and dessert all rolled into one.
Coupled with their excessive ‘borrow and spend’ philosophy, this is how they manage the art of economic destruction every time they get into power. Balancing the books to them is making sure the pile on the table doesn’t fall off. We can be grumpy with the current coalition, but they are, metaphorically speaking, still picking up the books that Grant Robertson left on the floor. You can be sure none of them were on the topic of economic responsibility.
Yes, they’ve been clever – probably with expert advice – but don’t be fooled. This effort might look just like a pothole, but we will see huge slips appearing as they gouge into your pot of gold.
Julius Caesar once said “Beware the Ides of March”, knowing his enemies were plotting his overthrow. I say beware the Ideas of Labour, because they are plotting our overthrow.
JC is a right-wing crusader. Reached an age that embodies the dictum only the good die young. This article was first published HERE
6 comments:
As an aside it was not Ceasar that said 'Beware the Ides of March' it was his soothsayer that told him and albeit Ceasar was wary he wasn't wary enough.
Anyway apart from that I totally agree.
Introducing more and more taxes implies the countries woes are due to the people. This is inherently wrong. The woes are due to the politicians and their mismanagement. Shutting the country down cost New Zealand billions. The poor taxpayer is now required to foot the bill. Cut the number of politicians in half(and their salaries) and definitely introduce laws that make them more accountable.
Typical lack of tax technical understanding from this commentator. CGT is not a wealth tax. It's an income tax. It's payable on profits arising from the sale of assets. And contrary to his/her comments on business productivity being taxed, capital gains generally have nothing to do with how hard or little a person works, particularly a passive investor. And we already have a tax on productivity - it's called company income tax and personal income tax which incorporates a tax on limited realised capital gains. Labour's CGT will simply widen that existing tax base, and make the whole process fairer by targeting those who game the system with the help of clever accountants. Properly designed, it should be readily capable of later extension into an effective comprehensive CGT. And that's got to be good for everybody, whether or not they need to visit their doctor three times a year.
Spoken like a true lefty, Jones Boy. "Let's tax ourselves to prosperity!" If it's more tax you want, I humbly suggest that we start taxing the huge income generated by the iwi corporations, before we introduce a CGT.
A stand should be made.... and should have been made long ago. But instead, .... the super- apathetic country digs its own grave!
Long, long overdue...... but if the people do not protest about this injustice, they deserve what they get i.e. ever higher tax.
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