And it’s not the only existing provision the Inland Revenue could look at enforcing in the face of runaway house prices and wealth inequality, writes Terry Baucher. Thirty-one years ago this month, then-Labour finance minister David Caygill proposed a comprehensive capital gains tax including the family home. The proposal was made following the release of … Read more
So is capital gains tax a good idea or…? Depends who you ask, but this Auckland house (Janaye Henry) that just made $140,000 in a year makes a pretty strong case for why it might be good, actually. As your average Auckland house, I’ve got to say 2020 has been pretty great for me. Just … Read more
Labour has made an extraordinary ascent in the polls and is now clinging to a mostly non-threatening brand of centrism. Hayden Donnell counts the cost of that strategy. Cast your mind back to 2016. As Bill English rolled out his budget, Grant Robertson issued what looked like a criticism. In an article headlined “a Budget … Read more
The tweak to the top tax rate was hardly a surprise given NZ voters’ continuing acceptance of a distortionary system that leaves capital gains largely exempt, writes Geof Nightingale. Labour tax policy, announced last week, was pretty brief: a new 39% marginal tax rate on income over $180,000 to raise $550m of new tax revenue. … Read more
Tax can be confusing – it seems to have its own special language, and politicians have a habit of saying things quickly and authoritatively about it that might not make much sense. So let’s clear that up – and see how New Zealand stacks up. The biggest tax promise from a major party so far … Read more
New Zealand’s narrow tax base benefits the wealthy and punishes the poor, says taxation academic Jonathan Barrett – and neither major party seems to want to do anything about it. Ability to pay is the basic principle of tax fairness: people in a similar financial position should pay similar amounts of tax; people who can … Read more
Without a capital gains tax, taxing inheritances is the best opportunity to address the entrenched inequalities of inter-generational wealth, argues Jonathan Barrett. The world’s wealthiest people will transfer US$15.4 trillion in assets to their heirs in the next decade, according to a recent report. Published by specialist data analysts Wealth-X, the report focused on the … Read more
The government’s extraordinary measures to halt Covid-19 and support the economy have had extraordinary public support. Tony Burton argues that the hard choices about who pays for it will be far less popular. I have lived with a skeleton since the lockdown. It’s white and shiny and takes up half the space in my living … Read more
From the reemerging debate around capital gains tax to the increasing reach of tax authorities, Terry Baucher, writing for interest.co.nz, looks at a number of implications the coronavirus pandemic could have on the tax system. “There are decades when nothing happens and there are weeks when decades happen,” Lenin is said to have remarked, possibly … Read more
Many people were disappointed about the government’s abandonment of the capital gains tax plan. But is there an alternative that could still open up the property market to those currently priced out? I’m just going to put my cards on the table – I am a supporter of a capital gains tax (CGT). I’m an … Read more
This month sees a landmark moment in the economic approach of the Ardern government, with the first ‘wellbeing Budget’ unveiled. How is it different, and what can we expect? Maria Slade sits down with the finance minister, Grant Robertson Grant Robertson isn’t Peter Jackson and the Treasury can’t do Weta-Workshop-level special effects, but the finance … Read more
In ditching the CGT, Jacinda Ardern has implicitly accepted that the primary structure of savings and investment in New Zealand will remain bound up in the family home. Accepting this reality may have been necessary to keep Kiwibuild on life support as house prices begin to fall. Avoiding solutions to the political question of wealth … Read more
Is the bond of trust and confidence between Mihingarangi Forbes and Annabelle Lee-Mather as strong as that between Judith Collins and Simon Bridges? In the latest Gone By Lunchtime, also featuring Toby Manhire and Ben Thomas, we investigate over a cool, refreshing slushy. Special guest Mihi Forbes joins the usual rabble to discuss the fallout … Read more
Despite the bitter disappointment of those who backed capital gains tax for a win, it’s not the only horse in the wealth tax race. Max Rashbrooke studies the form guide. If the capital gains tax were a horse, Jacinda Ardern’s announcement earlier this month was the final nobbling of an equine that, despite praise from … Read more
If we want to have nice things again, our best bet is to unite across age, race, gender or other lines under shared economic interests, rather than divide ourselves generationally, writes Branko Marcetic. Duncan Greive and I have a disagreement. Well, actually, we mostly agree. I, too, am disappointed by the prime minister’s abandonment of … Read more
The capital gains tax capitulation is just the latest triumph for the most powerful voting bloc in New Zealand history. Duncan Greive details the Boomers’ most pivotal victories. This post was published in April 2019. Wednesday’s shock announcement around capital gains tax marked the first major government acquiescence to the power of the baby boomer … Read more
Emily Writes was disappointed by yesterday’s capital gains tax news – but after years of government inaction on housing inequality, she wasn’t surprised. I found out that Jacinda Ardern had chucked plans to impose a capital gains tax through my group chat. Each day, my girlfriends and I chat throughout the day about various things … Read more
True, Jacinda Ardern has faced a few criticisms for ruling out a new capital gains tax now and for as long as she leads. But a lot of people are very, very happy. Two million dollars and a tax working group later, Jacinda Ardern has dumped the Capital Gains Tax forever, saying she still believed … Read more
Along with no CGT, the Labour government is left with other tax headaches like what to do about sugar consumption, the environment, and tax thresholds that haven’t changed in a decade, writes Terry Baucher. Perhaps the Tax Working Group was fatally compromised from the outset when the taxation of the family home was excluded from … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Heavy fallout from axing of capital gains tax, cost blowout for City Rail Link, and wrongly evicted Housing NZ tenants to get debt wiped. PM Jacinda Ardern has ruled out a capital gains tax. Not only now, mind you, she’s ruled out Labour ever campaigning on it … Read more
Jacinda Ardern’s government has abandoned the idea of a capital gains tax, and it’s a victory for self-interest and disingenuous debate, writes Jesse Mulligan Well that was fun. The Capital Gains Tax “debate” (let’s call it that, though it often felt like we were only hearing from one debating team – the one dropped off … Read more
Just after 2pm today, the capital gains tax proposal was pronounced dead by Prime Minister Jacinda Ardern. It’s just the latest in a run of bad news for the government’s much-vaunted policy projects, writes Danyl Mclauchlan. At the start of the year Jacinda Ardern declared that 2019 was her government’s ‘year of delivery’. Last year … Read more
A new campaign launches today making the case for a capital gains tax. Tax Justice Aotearoa’s Louise Delany and Paul Barber explain what they’re up to In the din of the current tax debate, there are voices that have largely gone unheard: hundreds of thousands of ordinary New Zealanders who believe the time is right … Read more
Imposing a Digital Services Tax will concentrate the tech giants’ minds on their woeful response to the Christchurch massacre, writes Terry Baucher. What to do about Facebook, Google and Twitter’s reprehensible failure to stop the live-streaming of a terrorist atrocity and the dissemination of vile images? How about a 20% Digital Services Tax, for starters … Read more
Annabelle Lee, Ben Thomas and Toby Manhire send their lifeboats into the great capital gains tax minestrone ocean. Michael Cullen’s Tax Working Group report has been published, sending the nation into untold capital gains tax convulsions. The Gone By Lunchtime panel piles in. How is Jacinda Ardern faring in making the case? What case is … Read more
A capital gains tax is urgently needed not so much for the revenue it will raise, but because the tax system is currently fundamentally unfair, writes policy director and economist for the Council of Trade Unions Bill Rosenberg. Our tax system is unfair. It’s not equipped for many of the needs which we, as New … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Military crisis erupts between India and Pakistan, top marine biologist disowns Te Papa connection, and DHBs still desperate for nurses. A hugely important story is unfolding right now in a critical part of the world. India and Pakistan, two nuclear armed powers and fierce geopolitical rivals, have … Read more
Literally decades worth of untaxed capital gains have created a political nightmare for the government. Is there any way they can navigate a capital gains tax through it, asks Danyl Mclauchlan? Part of the problem is that this government is trying to unshit the bed. We’ve had a deeply unfair tax system with its grossly … Read more
It’s our job to be fair, went the old ad campaign from the IRD. It’s my job to be kind, goes the on brand message from the Prime Minister. So we’re heading for a kinder and fairer tax system then? Guyon Espiner, writing for RNZ, is skeptical. But when it comes to making changes to … Read more