Labour govt 2020-23

[fungus pudding]

Farmers should get an exemption since passing down property is a important thing in regional areas.

They could pass it on minus a chunk of tax. It should be all or nothing. Nothing being the ideal tax level.

[Panda-NZ-]

Inheritance is not a sale so maybe it won't apply in any case depending on the wider details...

[Blue Skies]

Farmers should get an exemption since passing down property is a important thing in regional areas.

While keeping farms intact & passing it on to a family member has some merits, exempting 'farms' from CGT would create another distortion in the property market.
Farm's would increase in value as an asset class out of any ratio to productivity.
Wealthy city folk would park money in 'farms' in worse case scenario tying up valuable agricultural land, doing the bare minimum to maintain the illusion of a working farm.

Personally I would prefer no increased taxes, no CGT, but using other levers to dampen the property market.

[peetter]

While keeping farms intact & passing it on to a family member has some merits, exempting 'farms' from CGT would create another distortion in the property market.
Farm's would increase in value as an asset class out of any ratio to productivity.
Wealthy city folk would park money in 'farms' in worse case scenario tying up valuable agricultural land, doing the bare minimum to maintain the illusion of a working farm.

Personally I would prefer no increased taxes, no CGT, but using other levers to dampen the property market.

No NZ government will ever pass CGT without exempting homes and family farms(also home). It would be political suicide.

Anyway, your view makes no sense. First inheritance shouldn't be taxed as you'll end up with some children having to sell in order to pay taxes on something their parents bought and payed taxes on. Second, most of the countries in world have CGT exceptions on family homes.

[Bjauck]

No NZ government will ever pass CGT without exempting homes and family farms(also home). It would be political suicide.

Anyway, your view makes no sense. First inheritance shouldn't be taxed as you'll end up with some children having to sell in order to pay taxes on something their parents bought and payed taxes on. Second, most of the countries in world have CGT exceptions on family homes.

Some of the countries that have CGT exemptions on the family home actually have gift duties and/or inheritance taxes and/or stamp duties levied on home purchases. Is NZ unique in having no inheritance tax, no general CGT, no gift duties and no stamp duties? In NZ - currently - any general CGT, even one that excludes the family home, is political suicide. Hence even leftist Ardern categorically ruled one out.

I am not sure why inheritance taxes should be ruled out on the basis that the assets have already previously incurred taxes. Using similar logic, we should eliminate most tax gathering. GST should go for a start, on the basis that people pay for goods out of income that has already been taxed (although of course some people do pay for goods out of capital gains that have not been taxed.) As money continually circulates it continually incurs various taxes.

[peetter]

Inheritance tax is just a disgusting tax. There's no other way to describe it. Your parents work and save all life (while paying taxes) to leave you something so you can get ahead and stinky government will get their filthy claws on part of those already taxed savings. I mean if that's not a daylight robbery, I don't know what is. Anyone thinking this is okay doesn't have their morals in check.

As far as CGT goes, that one I can at least understand.

[Blue Skies]

Inheritance tax is just a disgusting tax. There's no other way to describe it. Your parents work and save all life (while paying taxes) to leave you something so you can get ahead and stinky government will get their filthy claws on part of those already taxed savings. I mean if that's not a daylight robbery, I don't know what is. Anyone thinking this is okay doesn't have their morals in check.

As far as CGT goes, that one I can at least understand.

There are of course very strong arguments for Death Duties or inheritance tax as you prefer to call it, esp if you believe in meritocracy.
These are worth considering before condemming them as disgusting.

Should the burden of taxes fall solely on those who by their own merit and hard work earn & create their own wealth, while those who are the benificaries or recipients of inherited wealth which they have done absolutely nothing to deserve other than having the good luck to be born out of the right vagina (as Russel Brand famously said), be given the further privilege of it being tax free?

If you believe in a society where the burden of taxes for things like health, education, defence etc is shared equally so as to minimise unequal opportunity & privilege & soaring inequality, then perhaps Death Duties should be included.

Some would argue Death Duties are the fairest form of tax, as the beneficiaries have done nothing themselves to earn the wealth, unlike other taxpayers who are paying tax on every dollar they earn or have created themselves.
Since they haven't personally had to work for it or earn it, they haven't actually personally lost anything.

Disc. just presenting the arguments for, I would be horrified if Death Duties were imposed on us.

[Panda-NZ-]

The CGT with exemptions may be more efficient than the current "bright line rules" and the ineffective approach which covers stock market trading.

[fungus pudding]

There are of course very strong arguments for Death Duties or inheritance tax as you prefer to call it, esp if you believe in meritocracy.

Cgt and ingeritance taxes, are or were different things. Nothing to do with what anyone prefers to call them.

[Blue Skies]

Cgt and ingeritance taxes, are or were different things. Nothing to do with what anyone prefers to call them.

Obviously!
No one's suggesting CGT & Death Duties are the same thing!