Voters on both sides of the world will see Labour oppositions in a completely new light after this week. Phil Goff and Ed Miliband both took on untouchable third-rail issues; capital gains tax in New Zealand and Rupert Murdoch’s pernicious monopoly media influence in England. Both leaders have turned the political landscape upside down and given voters a clear choice between the interests of the many and the interests of the few.
Labour’s launch of its tax policy was professional, thorough, and strong. Phil Goff, David Cunliffe and David Parker demonstrated a strong front-bench economic team. They called themselves shadow Ministers instead of spokespersons, and totally looked the part. The policy was not just about capital gains for fairness between wage earners and capital earners, but also about paying off debt without selling assets, and building a platform for sustainable growth through developing our exports. Go here for all the details.
New Zealand is not for sale – game on for November!
Capital gains tax at 15%. Lower than top income tax rates to allow for inflation.
Home, collectibles, small business, and retirement schemes exempt. That final one is important- the right had been trying to scare-monger about kiwisaver.
It will raise enough revenue to cover the $5000 tax-free band and cover the debt impact of not selling assets.
The new top tax rate will kick in at $150,000 and 39%, only 2% of the population will pay anything at this level and it’s enough to take GST off fresh food and vegetables.
There’s no big new spending. This is not the ‘tax and spend’ National has claimed. It’s a shift in what is taxed, away from work and food to capital haus.
Labour’s debt track hugs National’s. That’s important. Labour can say it is being just as responsible on the deficit as the government.
Cunliffe explains capital gains: