Capital Gains Tax

[GTM 3442]

There doesn't seem to be anything particularly difficult about taxing capital gains.

The ability to tax “deemed income” already exists thanks to the FIF regime – just needs a little tweaking.

You can only tax things which you can easily and readily value. Helpfully there are share registries, rating databases, tax returns, company filings, and the like which allow a valuation to be made and a loss/gain calculated relatively simply.

And of course, the exceptions/exemptions. Helpfully there are many countries with a CGT with exceptions/exemptions, so it’s not a major exercise to pinch an idea or two (or four or more) to suit New Zealand’s undoubtedly “special and unique conditions”.

As with GST, a fairly long period for the Great New Zealand Public to warm to the idea, and a small legion of comms people to sell the idea and the details.

Then you’d need a start date for the valuations – ideally a couple of years in the future.

Administratively it’s not particularly difficult – the source data pretty much already exists, making it an integration exercise as much as anything. Set it up and just wait for the transactions to start ticking over and the money to start rolling in.

And who would you get to do it?

Who better than the Tax Partners at EY, Deloittes or some crowd like that. Pay them five million bucks a head for the detailed design, two new passports in names of their choosing, and a complimentary one-way ticket to anywhere else in the world. And a five million buck bonus payable after three years if it rakes in as much as their design predicted.

[Aaron]

As with GST, a fairly long period for the Great New Zealand Public to warm to the idea, and a small legion of comms people to sell the idea and the details.

Just remembered reading an opinion piece from John Roughgan about capital gains tax. This sentence caught my attention and reminded me how powerful the media is in shaping public opinion.

https://www.nzherald.co.nz/nz/john-r...N2ZZM7U4ID3RM/

A new Herald editor had brought me back from Parliament to join the small team that wrote its editorials.
Our editorials were supporting GST, reversing the paper’s previous opposition to a value-added tax whenever one had been recommended by reviews of the tax system. But capital gains tax was a step too far even for Rogernomics at that time.

The paper makes the decision what to support and what to squash.

While looking for the article I came across this one, unrelated to capital gains tax but holy s*it I have not been following the three waters and co-governance debate thinking it is just racist negativity from white people, but no this is crazy stuff, not democratic at all.

https://www.nzherald.co.nz/nz/john-r...KBYMKDPVQJYQ/#

Whoever proposed this sort of thing is working hard for two NZs splitting people based on race and giving one race special powers over everyone else. To me this seems like total bull*hit.

I can now see why there seems to be a lot of Maori separatists in parliament, sounds like a good deal for them. If this legislation gets signed into law it will be outrageous.

How we could have people in power promoting and supporting this undemocratic divisive policy is beyond me (unless they are Maori or stupid). No wonder Jacinda left, slow learners like me are just waking up to what is happening in parliament. Stop race based policy.

[GTM 3442]

I don’t think it’ll only be Māori subject to CGT, but I suppose you have to allow for tha vagaries of electoral politics.

[Aaron]

I don’t think it’ll only be Māori subject to CGT, but I suppose you have to allow for tha vagaries of electoral politics.

Sorry got side tracked in the last post, not mixing capital gains and Maori politics.

Saw this click bait but clicked anyway as it discussed the big threat of bringing in a capital gains tax. Not sure how well researched this is or even how they would get that data so take it with a grain of salt, but if there is an element of truth to it Australia a place to go to for millionaries despite capital gains tax. USA has a capital gains tax I think. Israel and Singapore don't know.

The daily digest does not sound like a serious news organisation and is Zeleb.es even a person's name. The joys of the internet and all the **** it produces.

https://www.msn.com/en-nz/news/other...ei=14#image=16

[Aaron]

Good to see Chippy towing the line.

https://www.stuff.co.nz/national/pol...--end-of-story

Another gutless ineffectual leader kowtowing to the selfish boomer vote. As much as I hate everything else about the greens maybe I will give them my vote based on their tax policy.

Has national still got raising the retirement age to 67 as part of their policy? I assume they have, brave but this will not happen until the last boomer is firmly attached to the taxpayer teat otherwise it is not politically palatable.

Here we go with an article from RNZ.

https://www.rnz.co.nz/news/national/...s%20the%20same.

National's Christopher Luxon has committed to raising the age of superannuation should the party get into power.

The party intends to lift the age of eligibility from 65 to 67, despite a recent report from the Retirement Commission recommending the age stays the same. Luxon said increasing the age would be done gradually and the party was giving people 15-20 years' notice.

Lets work it out, the article was in November 2022 so 15-20 years away would make the youngest boomer 73years old if I am not much mistaken (2037-1964 = 73). The only surprise is that they allowed a few gen xers to join them at the taxpayer trough.

Tertiary education became unaffordable almost immediately after the last boomer graduated.

I am tarring all boomers with the same brush much like a racist does on other issues so my apologies to the people who aren't selfish and do want to invest in NZs future not just your own.

[777]

Aaron your hatred of "boomers" affects your rational thinking.

[Logen Ninefingers]

Chipkins knows a CGT now would kill Labours flagging election chances stone dead, along with the struggling property market. Even more so when National have a suite of ‘property ponzi’ friendly policies ready to implement. Politicians will always be pragmatic realists when their careers are on the line, something that myopic idealists can’t seem to understand.

[Aaron]

Aaron your hatred of "boomers" affects your rational thinking.

I don't really hate boomers (some of them are friends) but I am at a point where more of the same from govt doesn't do it for me anymore. One issue for me is monetary policy and the continuing rise of wealth and income inequality with a smaller percentage of the country capturing more of the wealth and income. It has been happening for a long time.

Being wealthy is not a problem if everyone gets a similar opportunity when they are young, but with the decrease in income tax rates and the rise of regressive GST rates, the abolishment of stamp duty, gift duty. all death and estate taxes as well as no wealth or capital gains tax and now a regressive inflation tax (cost of living tax) it seems to me that we are setting ourselves up for something more akin to a feudal society where your status and success is decided at birth. Maybe a few generations away but I can't see why we would work towards something like that.

Mind you a communist "green" state is also repugnant so I am unsure how I might vote but my pick for this election is that the smaller more extreme parties will do better than usual as National and Labour offer nothing except a safe comfortable retirement for baby boomers, with some of the cost being lumped onto the following generations.

John Key, Jacinda Ardern and now Chippy all have to sing from the same song sheet to get re-elected.

[nztx]

I don't really hate boomers (some of them are friends) but I am at a point where more of the same from govt doesn't do it for me anymore. One issue for me is monetary policy and the continuing rise of wealth and income inequality with a smaller percentage of the country capturing more of the wealth and income. It has been happening for a long time.

Being wealthy is not a problem if everyone gets a similar opportunity when they are young, but with the decrease in income tax rates and the rise of regressive GST rates, the abolishment of stamp duty, gift duty, no wealth or capital gains tax and now a regressive inflation tax (cost of living tax) it seems to me that we are setting ourselves up for something more akin to a feudal society where your status and success is decided at birth. Maybe a few generations away but I can't see why we would work towards something like that.

Mind you a communist "green" state is also repugnant so I am unsure how I might vote but my pick for this election is that the smaller more extreme parties will do better than usual as National and Labour offer nothing except a safe comfortable retirement for baby boomers, with some of the cost being lumped onto the following generations.

John Key, Jacinda Ardern and now Chippy all have to sing from the same song sheet to get re-elected.

Unfortunately Chumpkins only gets to use the song sheets with all the passages and words missing from Ardern's
attempts at trying rewrite it with a fair bit of airhead spin on the fly, before throwing herself off the tight rope

[BlackPeter]

...

Another gutless ineffectual leader kowtowing to the selfish boomer vote. As much as I hate everything else about the greens maybe I will give them my vote based on their tax policy.

...

Tertiary education became unaffordable almost immediately after the last boomer graduated.

I am tarring all boomers with the same brush much like a racist does on other issues so my apologies to the people who aren't selfish and do want to invest in NZs future not just your own.

Just curious - how else would you describe yourself, based on this post, other than selfish?

Reminds me at the old joke: Everybody cares only about himself, only me cares about myself.

Let me ensure you, boomers are people like you and I, and the Gauss curve distribution applies for them exactly as for every other generation, race, nationality or gender.

But given that you clearly don't seem to be a boomer (unless you are a masochist as well), I apologize on behalf of your parents, who you clearly describe as some extraordinary selfish ars*holes. These things happen in any generation, but particularly selfish people conceive them this way.