Albanese’s been having problems getting his super tax plan across the line, despite having a majority in Parliament.
The Opposition to it has come not just from the usual suspects, but also former PM and Labor stalwart Paul Keating - even the Unions cried boohoo.
So he’s had to U-turn on unrealised gains, which have always been a stupid thing to try and tax.
How can you pay tax on money you haven’t earned?
The Greens want to do this. David Parker wanted to it. Te Pati Māori wants it.
And Debbie said at the weekend that she and Chippy are on the same page when it comes to a wealth tax.
He denies this, but does anyone believe a guy who won’t tell you what he’s really thinking or what he really stands for?
Until he rules something in or out, he looks like a guy plotting in secret. He and Barbara are squirrelled away with an abacus and a calculator quietly conjuring up a new and inventive revenue streams.
We’re left wondering whose business, whose property is ripe for the picking.
The warning from Australia is pretty night and day, if you’re going to tax something, and that’s a big "if" here at home, but if you’re going to do it, you’d better make sure it’s a realised gain and not a tax on imaginary, on-paper earnings.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
8 comments:
Who do kiwi battlers turn to?
Nicola Willis continues her transfer of taxpayers wealth to the corporate cartels.
Despite Luxon and Bishop stating nz house prices are too high, Willis is increasing banks ability to lend.
House prices are about to head north and the "double international benchmark" profit margins of nz banks will continue to grow.
@ anonymous 7:13 I’d have thought kiwi battlers wouldn’t be stupid enough to turn to the clown show that poured accelerant on the battle doubling national debt, house prices and presiding over record inflation over 6 years leaving the economy in ruins.
There’s a warning for Chris Hipkins from a century of failed Marxism but I doubt that will have any affect either.
Bear in mind Cullen introduced the FIF/FDR regime which annually taxes unrealised capital gains on most overseas shares (and no credit if they go down), so Labour are already comfortable with that approach
People need to realize that we already have forms of wealth taxes. First-off: Rates. Payable on the value of your property (i.e. proportional to wealth, not income). Then we have the FIF scheme, for those with overseas investments (excluding Australia). A tax that is based on a fraction of your portfolio value (i.e. wealth). The only issue is that if the value of the portfolio falls, you don't have to pay. Similarly, KiwiSaver and other investment schemes are taxed via PIE. None of these are as obvious as GST or Income tax, but they do exist and they are a drag.
But apparently, we need overt wealth and capital gains taxes, in addition to these existing ones.
Anon 0824.
Our only chance is Luxon remembers his morals and doesn't want to look back on a failed prime ministership.
If you tax unrealised gains, then you must give a credit for unrealised losses. But whatever - go down that track and you create an industry for oversight that will quickly consume and outweigh any benefits. It's a patently dumb idea, conjured-up by imbeciles that have never worked for a living in the real world. And, what more proof do you need than, Chloe Swarbrick is all for it.
"The only issue is that if the value of the portfolio falls, you don't have to pay."
But you have to pay tax on the same profit twice.
Year 1: $10,000 - $11,000 tax to pay on the $1000
Year 2: $11,000 - $10,000 no tax to pay, no refund
Year 3: $10,000 - $11,000 tax to pay on the $1000 AGAIN.
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