Kerre Woodham: Labour suggesting a capital gains tax is galling

I am absolutely gobsmacked at the sheer gall of Labour even considering, suggesting, putting it out there, hey, run it up the flagpole, some form of capital gains tax might be back on the agenda.

Apparently Barbara Edmonds, who is the finance spokesperson for Labour, is just putting it out there, seeing what people think. How very dare they for two glaringly obvious reasons. A) because they had every opportunity to introduce a capital gains tax or to revamp the taxation system not just once, but twice during their six long years in office. They set up the Tax Working Group to come up with recommendations to make New Zealand's tax system a fairer one, and when the working group Chair, Sir Michael Cullen, presented the final report, the Tax Working Group said, look, we support a broad-based tax on capital gains and suggested that handing back much of the $8.3 billion it might raise over five years through income tax cuts for almost all workers. The proposals, had they been adopted, would take billions from the wealthy and give most of that money back quite evenly to millions of taxpayers, which all sounds kind and fair and true to Labour’s socialist roots and not completely unreasonable. As Sir Michael said, it was wrong that wage earners were taxed on their full income while you can earn income from gains on assets and not be taxed at all. So, all very Labour and all very true to the cause. But what did Jacinda Ardern do? She ignored the recommendations and said a Capital Gains Tax wouldn't happen while she was leader. 

There was another attempt when Labour had an absolute majority in its final term to introduce a Capital Gains Tax. Both David Parker, the Revenue Minister, and Finance Minister Grant Robertson were for it. They’d done a lot of work on it, they'd picked up the work that the Tax Working Group had done. Chris Hipkins knew the electorate wouldn't stand for it, so put that proposal, along with many others on the bonfire, in a desperate and futile attempt to win back voters. And not only that, demoted David Parker. Well, David Parker to be fair excused himself or recused himself from being Minister because he didn't support ditching their Capital Gains Tax. It was an opportunity in a political lifetime to make effective change. His boss didn't have the cajones for it, so David Parker stepped back and was demoted and has since sort of languishing down in the ranks now.  

So they had every opportunity to introduce a Capital Gains Tax and now they're in opposition they're talking about, hey, maybe we should look at some form of inheritance tax based on the Irish Capital Acquisitions Tax. It's galling.  

And B), the other reason they shouldn’t have the temerity to even suggest it, is because how could they possibly believe that New Zealanders would trust them with another brass cent? Even now, even the most deluded of fervent Labour supporters must look at the money that has been wasted. The money that is being wasted with nothing to show for it, and it makes me want to weep. If they were sensible stewards of our tax dollars, if they or any political party could show that they were sensible managers of our money, fill your boots. Take more of my tax dollars, take the money that I haven't earned, that's just come along with the rise in property values, bring in a 33% tax as Ireland is doing on unearned windfalls, ensure that everyone, not just the children of property owners, benefits from the accumulated wealth. Sure, do it, but for Labour to suggest taking more money from New Zealanders with their track record of waste etched into so many, many minds. It's going to take a very long time to forget that.   

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:06):
You're listening to the Carrywood and Morning's podcast from News
Talks ad B.

Speaker 2 (00:12):
I am absolutely gobsmacked at the sheer goal of Labor,
even considering suggesting putting it out there, Hey, run it
up the flagpole. Some form of capital gains tax might
be back on the agenda. Apparently Barbara Edmonds, who is

(00:32):
the finance spokesperson for Labors, just putting it out there,
seeing what people think. How very dare they? For too
glaringly obvious reasons A, Because they had every opportunity to
introduce a capital gains tax or to revamp the taxation

(00:52):
system not just once but twice during their six long
years in office. They set up the Tax Working Group
to come up with recommendations to make New Zealand's tax
system a fair away. And when the Working Group chair,
Sir Michael Cullen presented the final report, the Tax Working
Group said, look, we support a broad based tax on

(01:15):
capital gains and suggested that handing back much of the
eight point three billion it might raise over five years
through income tax cuts for almost all workers. The proposals,
had they been adopted, would take billions from the wealthy
and give most of that money back quite evenly to
millions of taxpayers, which all sounds kind and fair and

(01:39):
true to Labour's socialist routes, and not completely unreasonable, as
Sir Michael said, it was wrong that way journals were
taxed on their full income, while you can earn income
from gains on assets and not be taxed at all.
So all very Labor and all very true to the cause.
But what did you, Sinda Radundo. She ignored the recommendations

(02:00):
and said a capital gains tax wouldn't happen while she
was leader. There was another attempt, when Labor had an
absolute majority in its final term, to introduce a capital
gains tax. Both David Parker, the Finance Minister or the
Associate Finance Minister and Revenue Minister, and Grant Robertson were
for it. They'd done a lot of work on it.

(02:22):
They'd picked up the work that the Tax Working Group
had done. Chris Hopkins knew the Electric wouldn't stand for it,
so put that proposal, along with many others, on the
bonfire and a desperate and futile attempt to win back voters.
And not only that demoted David Parker, well, David Parker
to be fair excused himself or recused himself from being

(02:44):
minister because he didn't support ditching a capital gains tax.
It was an opportunity and a political lifetime to make
effective change. His boss didn't have the cajones for it,
so David Parker stepped back and was demoted. And since
languishing down in the ranks. Now they had every opportunity

(03:09):
to introduce a capital gains tax, and now they're in opposition,
they're talking about, hey, maybe we should look at some
form of inheritance tax based on the Irish capital acquisitions tax.
It's galling and be The other reason I think it's
just the temerity to even suggest it is because how

(03:30):
could they possibly believe that New Zealanders would trust them
with another brass scent. Even now, even the most deluded
of fervent labor supporters must look at the money that
has been wasted, the money that has been wasted with
nothing to show for it, and it makes me want

(03:51):
a weep. They were sensible stewards of our tax dollars.
If they or any political party could show that they
were sensible managers of our money, failure boots, take more
of my tax dollars, you know, take the money that
I haven't earned that's just come along with the rise

(04:14):
and property values. Bring in a thirty three percent tax,
as Ireland is doing on unearned windfalls. Ensure that everyone,
not just the children of property owners, benefits from everybody,
you know, as a small groups accumulated, well, sure do it.
But for Labor to suggest taking more money from New Zealanders,

(04:36):
with their track record of waste etched into so many
many minds, it's going to take a very long time
to forget that.

Speaker 1 (04:45):
For more from carry Wood and Mornings, listen live to
news talks that'd be from nine am weekdays, or follow
the podcast on iHeartRadio.