Mitigating the effects of a potential new capital gains tax

[janner]

No chance any party proposing a capital gains tax on one's family home is elected in my opinion.

Stamp Duty has a much nicer sound than Capital Gains Tax.

[Bjauck]

Stamp Duty has a much nicer sound than Capital Gains Tax.

Stamp duty is a type of wealth tax - it applies to a transaction whether or not there is a capital gain. If that is introduced it should be applied to all real estate as well as financial investments.

CGT on the family home is a political non-starter. So more than likely it seems we could end up with a system that will see further flight of individual investors from owning shares and a further hollowing out of the share market with more household wealth ending up in residential land.

[janner]

Stamp duty is a type of wealth tax - it applies to a transaction whether or not there is a capital gain. If that is introduced it should be applied to all real estate as well as financial investments.

It was in reply to Beagle. If there has to be any monies raised by Government on real estate Stamp Duty would sound kinder.

Which is what the Hong Kong Government call the Point Zero One % on share trading.
Buying or Selling.

However. Most if not all Governments are just plain greedy.

[Bjauck]

...However. Most if not all Governments are just plain greedy.

....an ageing population, health, defence, security, infrastructure and social welfare cost money. I wouldn’t want to see a return to Victorian era (and earlier) poverty, workhouses, begging, and widespread violence. I also have no problem with the government wishing to broaden the tax base. I hope any reforms also help broaden household investment base away from being so dependent on residential property and help successful business to remain in NZ with NZ funding.

Anyway it is still a long furrow to hoe before even a partial CGT is introduced.

[Patient Panda]

It was in reply to Beagle. If there has to be any monies raised by Government on real estate Stamp Duty would sound kinder.

Which is what the Hong Kong Government call the Point Zero One % on share trading.
Buying or Selling.

However. Most if not all Governments are just plain greedy.

A stamp duty or transactional tax would be a much better, much more efficient implementation.

[janner]

A stamp duty or transactional tax would be a much better, much more efficient implementation.

Of course.

However there are to many vested interests.

[janner]

....an ageing population, health, defence, security, infrastructure and social welfare cost money. I wouldn’t want to see a return to Victorian era (and earlier) poverty, workhouses, begging, and widespread violence. I also have no problem with the government wishing to broaden the tax base. I hope any reforms also help broaden household investment base away from being so dependent on residential property and help successful business to remain in NZ with NZ funding.

Anyway it is still a long furrow to hoe before even a partial CGT is introduced.

Not to be introduced until " after " Liabour are re-elected was promised.

We know how trustworthy this current lot are.

[Lewylewylewy]

I think there should be a "tall poppy tax". Basically, if you feel that anyone looks like they're doing well, you can call an 0800 hotline (and it can even be if someone buys the nice cut of meat in the supermarket), the hotline folk will then bravely tax the person you're calling about. The tax will be a percentage of their total wealth plus $10k (in case they've got money hidden off shore, because i bet they have!)

[sonny n share]

"There is nothing fair about a Cullen Capital Gains Tax"

https://www.stuff.co.nz/opinion/107263365/damien-grant-there-is-nothing-fair-about-a-cullen-capital-gains-tax

[pierre]

I think there should be a "tall poppy tax". Basically, if you feel that anyone looks like they're doing well, you can call an 0800 hotline (and it can even be if someone buys the nice cut of meat in the supermarket), the hotline folk will then bravely tax the person you're calling about. The tax will be a percentage of their total wealth plus $10k (in case they've got money hidden off shore, because i bet they have!)

Hilarious! But don't anyone tell Jacinda - she's bound to think its a great idea and implement it before Christmas.