Capital Gains Tax

The SST reports on the poll last week showing 80% of NZers oppose a capital gains tax on property, however this reduces to 41% if the first home is exempted.

In theory capital gains taxes generally can have a role to play in an economy. It is important to note however that many capital gains are already taxed – including property.

And expert John Shewan notes a gains tax on property “becomes easy to avoid, expensive to administer, easily exploitable, and still favours some taxpayers over others”

Something which would make me more favourable towards such a tax, would be a guarantee that any government introducing it would cut other taxes so that total taxation doesn’t just keep going upwards.

We see this also with Nandor’s proposed waste tax. I’d be more prepared to back a waste tax, if in exchange for it other taxes were lowered. But left wing Governments just come up with more and more taxes it seems.

Hat Tip: Tony Milne