Capital Gains Tax

[Panda-NZ-]

Australia's CGT is 20% (but only if you held the asset for 12 months). Red tape!

Otherwise it's 45% and you're on the highest tax rate.

[Aaron]

A lot will depend on what type of CGT is brought in. The one proposed by Michael Cullen (he hated the rich with a vengence) will see them take their funds and wealth over to Australia.

IMO, a CGT is well overdue in NZ so let's stop mucking around and bring a sensible one in.

I don't remember the details but I think Michael Cullen missed an opportunity by not proposing a simple across the board CGT but at lower rates than the taxes on labour, just to make it palatable.

Michael Cullen came across as a whiny dweeb while in opposition, but once in power he at least tried to address bigger issues such as the affordability of national superannuation. The Cullen fund was an attempt at current generations putting something aside for their own retirement and kiwisaver compelled the next generation to start saving for their own retirement.

I liked his comment "I don't mind people climbing the ladder of success but I do not like it when they try to kick out the rungs of that ladder once at the top" or something to that effect.

[Aaron]

That will happen for sure. The leaving that is, not the threat.

Usually it is just the threat, but you never know.

[dobby41]

Unlike other countries, almost all the wealthy in NZ already have substantial assets & wealth in places like Australia. In fact, most of them spend a great of their time overseas.

An easy hop and it's Australia residence for them - just as so many doctors and young skilled NZers have done in the last 5 years.

A lot will depend on what type of CGT is brought in. The one proposed by Michael Cullen (he hated the rich with a vengence) will see them take their funds and wealth over to Australia.

IMO, a CGT is well overdue in NZ so let's stop mucking around and bring a sensible one in.

The only proper CGT is to tax ALL capital gains (with a threshold for the family homes (maybe $1mil per owner)).
Wide-ranging and simple.
The only sticky point is establishing the value of the assets at the start but that is a one-off issue.

I find it laughable that people suggest people will leave if one is introduced - maybe go to Aus where they have GCT and stamp duty.

[SBQ]

The only proper CGT is to tax ALL capital gains (with a threshold for the family homes (maybe $1mil per owner)).
Wide-ranging and simple.
The only sticky point is establishing the value of the assets at the start but that is a one-off issue.

I find it laughable that people suggest people will leave if one is introduced - maybe go to Aus where they have GCT and stamp duty.

and like all other 'similar' countries to NZ (English speaking) that have CGT, they ALSO have CGL (LOSS). In Canada you can claim back the tax you paid on CGT with a future CGL which averages out the gains. Unlike NZ's FIF, they are only worried about the paper gains and not the losses of 1 year to another.

Warren Buffet has the same view that he's flabbergasted on the though of the wealthy and rich fleeing America. His view is you're already rich, why be so greedy? and if moving would ever satisfy anything ; i'm amazed the amount of great effort multi-millionaires go through to pay the least amount of taxes when any savings would have little or no benefit to the overall outcome of their standard of living.

[Panda-NZ-]

Warren Buffet has the same view that he's flabbergasted on the though of the wealthy and rich fleeing America. His view is you're already rich, why be so greedy? and if moving would ever satisfy anything ; i'm amazed the amount of great effort multi-millionaires go through to pay the least amount of taxes when any savings would have little or no benefit to the overall outcome of their standard of living.

The US still has an inheritance tax too (although a weak one).

If they actually enforced their own tax laws they would be overall more progressive than NZ esp with no sales tax.

[nztx]

Dont think there will be much in way of reductions in any other taxation if a CGT ever got brought in

Look back no further to the same Labour's non performances on promises following introduction of GST

All smoke, mirrors and grandiose lies

And who does Dozy Parker expect to swallow the convenient widened theory that capital gains of any sort form income ?

Surely the sharp tax collectors can't have been doing their job right if Comrade Dozy's tax rate claims come out well south of the lowest effective tax rates in play for the selected band of wealthy examples ..

We might need thousands more Accountants, Valuers and Civil Service bods to deal with all the extra red tape on an even more poorly concocted excuse for CGT.

A poorer excuse for a Labour Govt will have even less of a clue on how it should operate than last time they tried spinning the same wheel only to be left looking idiots ..

Is Mahoota available to start the drafting job for the hapless Dozy Parker's attempt to respin the last failed CGT wheel ?

The CGT stance is likely to quite nicely turn around and see most of the peasants on the street also bitten badly on the backside whether they realise it or not

Almost as good as Robbo trying to tell everyone that some Interest expense is not a business expense
against all prevailing principles..

Look where that went and who wound up mostly on the paying end for those changes

These sort of weird and wonderful inspirations can always be expected from the Socialist comrades of the
failed Desperado cause headed for the exit door very soon, but not awake enough to see that they are signing their exit visa's in even retracing back to past badly failed attempts

Everything is fine and dandy in trying to slingshot in more of the private wealth on any old poor excuse to cover the gaps in the Govt's haphazard and excessive path of wasteful squandering and consultants to cover for their own total lack of clues

A Labour thing - isn't it ? .. and probably yet another failed one

[ValueNZ]

I'm not in favour of a CGT because I believe that the allocation of resources done by individuals is going to be far more efficient than what the government would be able to do. In the long term, all New Zealanders are going to be better off with the extra investment done by wealthy individuals without a CGT, than the benefit some may receive with a CGT.

"I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

[fungus pudding]

I'm not in favour of a CGT because I believe that the allocation of resources done by individuals is going to be far more efficient than what the government would be able to do. In the long term, all New Zealanders are going to be better off with the extra investment done by wealthy individuals without a CGT, than the benefit some may receive with a CGT.

Roger Douglas put it so succinctly, 'Im against CGT because it stops things happening'.

[Panda-NZ-]

I'm not in favour of a CGT because I believe that the allocation of resources done by individuals is going to be far more efficient than what the government would be able to do. In the long term, all New Zealanders are going to be better off with the extra investment done by wealthy individuals without a CGT, than the benefit some may receive with a CGT.

"I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

The private sector is heavily in debt.. the NZ govt has an AA+ credit rating, enough said.