Double Taxation, Double Cynicism

“Labour’s Capital Gains Tax is double taxation, and double cynicism,” says ACT Leader David Seymour.

“Labour’s Capital Gains Tax means you get taxed twice on the same thing. First, you pay tax on the income an asset earns. Then you pay again when you sell it, even though that value comes from the same income. That’s double taxation,

“Labour’s capital gains tax is doubly cynical. It’s cynical once because it’s an exercise in political signaling rather than policy. It’s cynical twice because the signal it sends is that taxing someone else will solve your problems.

“The policy would make New Zealand a nation of tax accountants, not entrepreneurs. The policy won’t raise much revenue, but it will raise a generation of people gaming the system instead of growing the economy.

“Labour’s capital gains tax does not solve a policy problem by raising revenue, because the New Zealand Government does not have a revenue problem. It is already an above-average taxer among developed nations, and one of the highest taxers in the developed world.

“New Zealand already taxes more than most developed countries – 34 percent of GDP, higher than Australia’s 29.4. We are a high-tax nation without a Capital Gains Tax. Our goal should be to tax less so people who take risks can keep more of what they earn.

“They say it’ll fund free doctor visits, but it wouldn’t. The tax wouldn’t raise a cent until years after its proposed start date. It’s marketing, not policy.

“Free doctors visits are not even a good idea, people who can make a contribution should make one, it means people go when they need to, and the relationship stays real. That is the first cynical marketing feature of the policy. There are already free and subsidised GP visits for low income and young New Zealanders.

“There is another unspoken cynicism about Labour’s capital gains tax though. The unspoken bit is ‘we’ll take from someone else to solve your problems.’ The truth is our society will not thrive on scapegoating.

“Every year it’s someone new. When rents were high it was landlords. When there was a terror attack it was Licensed Firearm Owners. When petrol was expensive it was petrol companies. When farmers do well, they’re bad people ruining the environment. Labour are tapping the same tall poppy spirit, yet again. It’s getting tired. Fair is fair and people should pay their taxes, but we already pay more than most. Another tax is not the solution to our problems.”