Capital Gains Tax

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Originally Posted by CJ

do you use LIFO, FIFO or weighted average?

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Cheeky! :P

Perhaps a Financial Transaction Tax would be a better option than the Labour proposal http://www.makefinancework.org/home-...r-a-financial/

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Originally Posted by Waiuta

Perhaps a Financial Transaction Tax would be a better option than the Labour proposal http://www.makefinancework.org/home-...r-a-financial/

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Perhaps stopping the waste of our money would be even better still.

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Originally Posted by belgarion

Well once again Labour has shot itself in the foot.

Instead of making the CGT very simple and with no exceptions, they've suggested
a leftist style load of mumbo-jumbo that seeks to 'balance the tax take' along
social engineering lines. Bollocks.

And no GST on fresh foods? More Bollocks!

And more progressive tax on high income earners who are generally salaried
and struggle to hide from tax unlike business owner. Even more Bollocks.

Why don't politians under the KISS principle? (Seems only R Douglas did that when he introducd GST!).

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Because among this sad Labour lot I doubt that there is one of them who has any commercial experience, or any they can remember. They simply do not know how the world works. You are right abour Roger Douglas. He rejected CGT because as he put it 'it stops things happening' and his no exemption GST should never be tampered with. It works, and it's simple and leaves little room for dodgy stuff.

Think of all the extra people that will be needed in the IRD. Everyone will have to file tax returns again to ensure they only get the first $5,000 tax free. Up goes the state servants numbers again.

Actually I can live with the CGT but I can't agree with the GST being wiped off fruit and vegetables, and the increase in the top tax rate is just a typical Labour "anti success" tax. The first $5,000 tax free is simply a vote bribe. All political and not fiscal.

No most likely people will only need a PTS, this involves minimal human intervention if requested online.

CGT is really a tax on inflation !!!!


Purchase Price 500,000

Average Inflation 3%
CGT Cap Gain P/Cent
Year Inflation Cap Gain 15% After Tax Loss
1 515,000 15,000 2,250 12,750 0.44%
2 530,450 30,450 4,568 25,883 0.86%
3 546,364 46,364 6,955 39,409 1.27%
4 562,754 62,754 9,413 53,341 1.67%
5 579,637 79,637 11,946 67,691 2.06%
6 597,026 97,026 14,554 82,472 2.44%
7 614,937 114,937 17,241 97,696 2.80%
8 633,385 133,385 20,008 113,377 3.16%
9 652,387 152,387 22,858 129,529 3.50%
10 671,958 171,958 25,794 146,164 3.84%
11 692,117 192,117 28,818 163,299 4.16%
12 712,880 212,880 31,932 180,948 4.48%
13 734,267 234,267 35,140 199,127 4.79%
14 756,295 256,295 38,444 217,851 5.08%
15 778,984 278,984 41,848 237,136 5.37%
16 802,353 302,353 45,353 257,000 5.65%
17 826,424 326,424 48,964 277,460 5.92%
18 851,217 351,217 52,682 298,534 6.19%
19 876,753 376,753 56,513 320,240 6.45%
20 903,056 403,056 60,458 342,597 6.69%

Cpoied from a spread sheet, Hope it comes out right

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Originally Posted by Billy Boy

CGT is really a tax on inflation !!!!

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Not if it includes a base allowance for inflation or the risk free rate of return.

Cunliffe tried to explain that the 15% they went with instead of tax payers marginal rate was in part 'an allowance for inflation'

If they get it in then watch the rate increase a year or down the track. The more they get the more they will waste.

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Originally Posted by 777

If they get it in then watch the rate increase a year or down the track. The more they get the more they will waste.

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Don’t worry 777, they haven’t got a hope of getting in and trying to get in bed with the Greens makes their chances even more remote.
But!! we must all do our part on voting day and keep the idiots out.

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Originally Posted by Billy Boy

CGT is really a tax on inflation !!!!

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That depends on whether the tax is on the nominal gain, as Goff's scheme intends, or the real gain, as is in many countries. Nominal gain is esay to impose and collect, but quite unfair, whereas the real gain leads to huge costs, both for the victim and the IRD.

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Originally Posted by fungus pudding

That depends on whether the tax is on the nominal gain, as Goff's scheme intends, or the real gain, as is in many countries. Nominal gain is esay to impose and collect, but quite unfair, whereas the real gain leads to huge costs, both for the victim and the IRD.

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Belg..... I dont think so.
Fungus....... Yes heg...zak...ally.....
Q. Are we going to see a CGT on Gold ???
What a can of bloody worms that will open !!!
e.g. some people have been accum'ing for years,
how are they going to prove their purchase prices.
and so on !!
BB
P.S. black markets ???

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Originally Posted by Billy Boy

Belg..... I dont think so.
Fungus....... Yes heg...zak...ally.....
Q. Are we going to see a CGT on Gold ???
What a can of bloody worms that will open !!!
e.g. some people have been accum'ing for years,
how are they going to prove their purchase prices.
and so on !!
BB
P.S. black markets ???

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If they ever get it and do this everything involved will be priced/costed as at a certain date .... so Cunliffe said on TV

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Originally Posted by winner69

If they ever get it and do this everything involved will be priced/costed as at a certain date .... so Cunliffe said on TV

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Cunliffe says a lot of things; he is a real worry that boy. Absolutely no idea of commerce and how the world works. :(