Quote Originally Posted by SBQ View Post
Here we go again (and i'm being sarcastic) . The NZ voice speaking out that what other large nations are doing is not so good, and NZ can go and try and do it better. So their CGT (or tax system) isn't so "fair" and NZ is out to try and reinvent the wheel (among many other things). After all, "We have a population of 4.5M people, we're SURELY to do better than the 350M people in N. America or the 23M in Australia" or perhaps all of Europe?



Perhaps question why so many are able to invest in NZ real estate and ABLE to pay not a single dime of tax on the gain of the asset upon time of sale??? When I first came to NZ, I thought it was VERY "blunt" that such an asset class was left untouched of any taxation. The excuse I was told then was NZ is a small country and deserves some perks.

Trading up the house home ownership? You mean it's a bad idea for people to value and treat their primary residence as a prized asset (for where they will make improvements), than an asset of financial gain? It's goes to show when Kiwis want a better home, they don't improve the house they live in, instead they sell the house and buy a NEWER house that has the improvements. It's a behaviour no different to changing cars.

Stamp duty is essentially no different to a GST on the sale of the house. But why do most houses in NZ don't have GST on them? Other countries have some form of 'sales tax' when it's changed hands. In Canada many provinces have a tax on the 2nd hand cars that get sold (PST). Are you saying that NZ already has enough taxes? I say NZ has been too generous to the top 10%.

Again, am I led to believe that the average Australia, Canadian, or American is smarter, more understanding about taxation and finance, then the typical Kiwi? My experience from speaking to various NZ financial advisors is, they fail to give me a straight answer regarding taxation & finance. When I grew up, CFA exams require all financial advisors to be fully updated with taxation laws. In fact, in almost every case all the finance advisors (N. America) have to give advice from the point of taxation. But in NZ, i'm compelled to believe they can not give advice from a tax point of view and say "you must also seek a tax accountant specialist". How complicated is that? As complicated as building a multistory house because all I see in NZ new sub-division builds is the same single story houses (can blame the NZ RMA for that).
NZ used to be (and probably still is) one of the countries with the lowest compliance costs to do business. And while I hear the lefties shouting "tax them to the hilt" - it is good for all of us if the compliance costs for business are low. This helps particularly small companies and they are the life blood of our economy. Lower compliance cost - more SME's, more jobs.

So - even if our government would manage to change the taxes in a way which does not increse the overall tax take (pull the other one ) - it drastically would increase compliance costs for business. They do have to pay people to value regularly their assets - and the accounting to calculate the tax burden gets much more expensive. Given that business (and the consumer) are paying this burden - we all will lose without gaining a cent - unless for tax accountants, of course - they would gain a lot!

Is it worth it? I seriously doubt it. Will Labour try to push it through? They probalby will despite understanding that it will damage the country. It might increase poverty and unemployment, which is good for them (more beneficiaries, more Labour voters).

Can't trust Labour to do the right thing (which would be ditching this proposal) - better make sure we get the next time the right people back into government.