Capital Gains Tax

[moka]

https://www.theguardian.com/world/20...ir-go-identity

New Zealand's astounding wealth gap challenges our 'fair go' identity
New data shows the richest 1% are worth 68 times more than a typical New Zealander.
The extent of wealth inequality in supposedly egalitarian New Zealand has been laid bare by figures showing the wealthiest individuals have over NZ$140bn (US$93bn) stashed away in trusts – and overall have nearly 70 times more assets than the typical Kiwi.
The wealth inequality data, developed in conjunction with Statistics New Zealand researchers, also show that the 1% have an average (mean) of $3.6m held in trusts, $1.6m in shares and $470,000 in cash. Their debts are on average just $80,000.
Overall, the wealthiest 10% have 59% of all the country’s assets, and the middle classes around 39%. That leaves the poorest half of the country with just 2%.

[Bjauck]

https://www.theguardian.com/world/20...ir-go-identity

New Zealand's astounding wealth gap challenges our 'fair go' identity
New data shows the richest 1% are worth 68 times more than a typical New Zealander.
The extent of wealth inequality in supposedly egalitarian New Zealand has been laid bare by figures showing the wealthiest individuals have over NZ$140bn (US$93bn) stashed away in trusts – and overall have nearly 70 times more assets than the typical Kiwi.
The wealth inequality data, developed in conjunction with Statistics New Zealand researchers, also show that the 1% have an average (mean) of $3.6m held in trusts, $1.6m in shares and $470,000 in cash. Their debts are on average just $80,000.
Overall, the wealthiest 10% have 59% of all the country’s assets, and the middle classes around 39%. That leaves the poorest half of the country with just 2%.

Wealth understandably tends to increase with age with the 55-65 age group being the most wealthy. With NZ houses becoming so expensive, the disparity in wealth from young to older has no doubt increased over the years. I also think it would be meaningful to gauge wealth inequality within age groups. That perhaps would be more significant marker of the growth in inequality in NZ.

Also, It would be interesting to know what percentage of wealth the top 0.1% has. I suspect that the top 1% figures will be slewed by the mega wealthy 0.1%

[artemis]

Critics of Oxfam's global wealth reports, and there are many critics, have pointed out that the bottom global wealth group includes US students close to graduating from the ivy league colleges.

[BlackPeter]

Critics of Oxfam's global wealth reports, and there are many critics, have pointed out that the bottom global wealth group includes US students close to graduating from the ivy league colleges.

Even if this may be technically correct for some of them, the number would not be material as proportion of the other 4b people who belong to the "have nothing's" ...

Inequality is one of our largest problems and it is rising ...

[artemis]

Even if this may be technically correct for some of them, the number would not be material as proportion of the other 4b people who belong to the "have nothing's" ...

Inequality is one of our largest problems and it is rising ...

Point is that debt is common enough but not taken into account. And the trouble with inequality is that is usually means inequality of outcome, a position barely relevant in New Zealand where opportunities are everywhere for most households. Does require opportunities to be chosen though.

[Aaron]

Even if this may be technically correct for some of them, the number would not be material as proportion of the other 4b people who belong to the "have nothing's" ...

Inequality is one of our largest problems and it is rising ...

Nothing being proposed from any party to reverse the rising inequality.

2011 I started this thread by suggesting I would vote for whoever proposes a capital gains tax. Obviously too hard to bring it in and stay in power. Much like Nationals superannuation surcharge, they bring in something sensible but the average bludging NZer has his/her hand out and is happy to sell their vote to the most generous party.

This election I will promise to vote for whichever party promises to scrap targeted inflation. Politically easy to do as people don't seem to care about such things. I will say, not if it is the Advance NZ Party they seem a bit fruity.

James Shaw has shown his true colours by insisting our tax dollars go to a private school. It said "green" so I guess his ideology overrode common sense as well as his own parties policy against privatising education. I would want to know his relationship to the people involved as well. Any hint of corruption and he should go. So far it only looks like stupidity any school that is planting crystals to improve fifth dimensional consciousness is one taxpayers should not be funding ever.

In my not so humble opinion.

P.s. Blackcap have you talked to Stephen Tindall yet?

[artemis]

Nothing being proposed from any party to reverse the rising inequality. .....

What about the social investment approach, partly implemented by the previous government. It is / was structured to improve opportunities and thus outcomes by careful targeting of support rather than scattergun funding.

Check out the Young Parent Payment, implemented and actually expanded under the last government, and I hear anecdotally (from a couple of MSD staffers) now less resourced and ticking over at best currently. And check out the policy to remove school decile funding and target support for pupils identified by schools as meeting risk profiles.

[Bjauck]

Nothing being proposed from any party to reverse the rising inequality.
..

NZ used to be regarded by migrants as a great place for raising kids.. However now we are ranked 34/41 for chid wellbeing in the OECD. Perhaps not a concern for some wealthy STers, who maybe have the wealth for a Bach/Crib beside the sea and access to private healthcare and education. Growing wealth inequality, Poverty, education quality and health outcomes all help NZ achieve this disappointing situation today.

https://www.stuff.co.nz/national/935...oped-countries

[Aaron]

What about the social investment approach, partly implemented by the previous government. It is / was structured to improve opportunities and thus outcomes by careful targeting of support rather than scattergun funding.

Check out the Young Parent Payment, implemented and actually expanded under the last government, and I hear anecdotally (from a couple of MSD staffers) now less resourced and ticking over at best currently. And check out the policy to remove school decile funding and target support for pupils identified by schools as meeting risk profiles.

They sound more like policies addressing the symptoms rather than addressing the main issue to me. Rising wealth inequality is not a bad thing per se, hard working people making good choices should be rewarded but having central banks push up house prices 7% a year (compounding) over the last 20 years feels good but doesn't seem sustainable to me now we are finally at 0% interest rates. Demand from excessive immigration will also be contributing but 20 years ago the 90day bank bill rate was 6% now it is .3%. Targeted inflation has driven up asset prices while exporting jobs to asia has meant a drop in the price of manufactured goods has disguised the effect. Trickle down economics is bulls**it. Surprised so called left leaning parties aren't addressing this. The more dopey this gets (e.g. Adrian Orr discussing negative interest rates) the more likely some other dopey option looks good, like communism.

[Bjauck]

Rising wealth inequality is not a bad thing per se...

I disagree. Absolute poverty (affecting shelter and health) is relevant along with comparative poverty. Rising inequality and inequality in general can affect those at the most disadvantaged end. For example with rising inequality those at the disadvantaged end would feel more excluded and could become less involved with the political and social environment, the more unequal society becomes. Also the latest technology, medical breakthroughs etc. would more likely be further out of reach for those at the most disadvantaged part leading to further divergence in opportunities and feeling of hopelessness and exclusion.