When Labour presented its capital gains tax policy it spent months in development. It consulted widely and presented a robust policy that won the media battle (despite National’s usual hysterics). In contrast, The Nats have rushed and bungled the process (all the while assuring us that there is no housing crisis!). National’s definitely not a capital gains tax that just happens to be a tax on capital gains is being made up on the hoof:
Capital gains tax policy rushed through development
It’s emerged the Government’s new policy stance on property taxes has only just been developed. … Minister of Revenue Todd McClay confirms they were developed recently. “We’ve been working through a number of things through a period of time. The current one is for a 4-5 week period.
…
Green Party Co-Leader Metiria Turei … says it shows the Government’s desperate to take measures to cool the housing market. “A month ago John Key was saying that a capital gains tax was off the table. Now he’s done a massive u turn.
As is usually the case with rushed policy, they have made a mess of it:
New property rules too little too late
From a tax policy perspective the rule appears so narrow as to be almost inconsequential. … The Government has been arm-twisted by its critics into a tax response to address Auckland property prices. But from the range of options available it has come up with the least effective.
In short, National have opened the door to more effective capital gains tax, thus irritating investors and their base, while probably not achieving anything in practice. From their point of view that’s the worst of both worlds. Labour is right, the whole process is “panic-Key”:
“It is panic stations at the Beehive. These are rushed and ill-conceived measures that experts have said will have negligible impact. “Even the Government’s former tax advisor John Shewan says it won’t curb skyrocketing house prices or deter speculators.
…
“These are the actions of a bystander Government that has watched the Auckland housing crisis unfold and then done too little too late,” Andrew Little says.
It just might be at that.
Bonus question:
Yesterday Jessica Williams sparked an interesting discussion:
So (asks Keith Ng) – are the Nats effectively underwriting losses when the property bubble bursts? Free money!
Bonus John Key lie:
“Housing crisis worse under Clark’s Government – Key”. Bernard Hickey called him out:
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