John Key is getting shriller and shriller on the topic of capital gains tax (CGT). How’s this for starters:
Key: Tax system envy of the world
New Zealand’s tax system is the envy of the world and does not need Labour’s capital gains tax which would prove to be “a dagger through the heart of growth”, says Prime Minister John Key.
Our tax system is the envy of the world ? Probably explains why all those other OECD countries are rushing to drop their CGT. Probably explains why so many businesses and wealthy individuals are flocking to our shores. Hang on, wait, those things didn’t happen. As for “a dagger through the heart of growth”, oh please. It’s Key vs just about every economist, analyst and commentator in New Zealand on the wisdom of a CGT.
Further Key scaremongering is summarised in this Sunday Star Times piece. But notice how writers (and cartoonists) are not taking Key seriously any more, they’re openly making fun of his hysterics:
A capital gains tax is the end of the world. It will “crush everyday New Zealanders”, says John Key. It is “economic vandalism”, says Key’s twin, Transport Minister Steven Joyce. It will send New Zealand “screaming backwards”, says Key, and force Kiwis to “flee” abroad. It will strangle little children in their beds (or something like that).
This kind of nonsense is nothing new for Key. Here’s a sample of the same from before the last election:
“I’ve had nine years of being told what lightbulb I can screw into the house, what shower I can take, what food I can eat, what things I can do, what thoughts I am allowed to have.
What is new is that Key isn’t getting away with it any more. The teflon is long gone, and Key has cried wolf too often. His popularity hasn’t followed his credibility into the downwards spiral yet, but it will.