Greens will push Labour to advance CGT

James Shaw has just said that the Greens would push Labour to bring forward a Capital Gains Tax in post-election coalition negotiations, in an interview on Q+A.

This came just after Jacinda Ardern reiterated her back-flip on pushing any possible CGT out until after the next election in 2020.

Shaw said that the CGT would be one of a couple priorities in coalition negotiations.

This won’t help alleviate uncertainties about what a Labour led government might do on tax next term.

This also highlights the uncertainties voters face when presented with individual party policies when what we end up getting is negotiated compromises – or small party policies are potentially used as an excuse to sneak in different policies.

In a following interview Winston Peters stated that CGT would be off the table as far as NZ First was concerned.

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17 Comments

  1. Trevors_elbow

     /  September 17, 2017

    Greens carry the policy… Labour use it as a reason to do EXACTLY what the want to do, impose a CGT. Negotiations will be the excuse

    Vote Labour get a CGT for free….

    Reply
  2. The Labour expert tax group turns out to be James Shaw?

    Reply
  3. Blazer

     /  September 17, 2017

    the much maligned CGT has quite broad support.Those opposing it scream louder and exploit the media…so much better.

    Reply
    • David

       /  September 17, 2017

      Of course there is broad support for a CGT, the devil is in the detail. The chances of Labour introducing something that isn’t a complete shambles isn’t high at all. They are trying to create a tax that ‘other’ people pay and will create so many gaps and holes it becomes a joke. In reality is should apply to all property.

      Reply
    • chrism56

       /  September 17, 2017

      Blaser if there is broad support, why did Labour drop it as soon as their private polling showed it was a vote loser? Or does it only have support among those that don’t vote or are net beneficiaries?

      Reply
    • Corky

       /  September 17, 2017

      .”Those opposing it scream louder and exploit the media…so much better.”

      And those supporting it will do exactly the same once they realise it’s not just the other chap this tax will effect…but also them and their back pockets.

      Reply
    • Trevors_elbow

       /  September 17, 2017

      Yeah right Blazer…. If there was broad support it would be on the books already….. Labour have pushed it in 2011 and 2014… and the electorate rejected it..
      .

      Keep saying it’s popular… you might convince yourself

      Reply
  4. Zedd

     /  September 17, 2017

    this once again proves that Labour & Greens are TWO seperate parties, not the Left & the far left of the same party, as many seem to think; its MMP not FPP !

    CGT seems to be on both parties agendas, but obviously Labour are taking more tentative steps…

    There are more things that the two have in common.. BUT the political commentators are just looking for things to divide them on; even sometimes suggesting that Labour are closer to NZF (not)

    This last week is going to be fascinating.. 😀

    Reply
  5. artcroft

     /  September 17, 2017

    Of course the Greens will advance a CGT before the environment. They know what plays to the little that remains of their base, and it ain’t environmentalism.

    Reply
  6. Gerrit

     /  September 17, 2017

    Whilst the CGT is an issue between the Greens and Labour, a far greatewr disagreement between potential coalition partner is far greater. To the Maori party the question of water ownership is not even remotely settled and will inhibit Labour from introducing and water “royalty” tax.

    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11922911

    “Treaty Negotiations Minister Chris Finlayson says Labour’s position this election overturns 25 years of treaty settlement policy of both parties.

    He has also said that the Government applying royalties to water was an assertion of ownership which would attract a counter claim by Maori that they owned the water.

    He says water royalties would open a Pandora’s box and could lead to full and final treaty settlements being reopened”

    Many “full and final” treaty settlements would need to be renegotiated to take into account Maori ownership of ALL water. Water has the potential to be bigger than the foreshore and seabed issue that led to the creation of the Maori Party in the first place.

    Quite how Labour is going to keep an alliance of the Greens and the Maori Party singing from the same song sheet will be interesting.

    Reply
    • Gerrit

       /  September 17, 2017

      Reread the first sentence as “Whilst the CGT is an issue between the Greens and Labour, a far greater source of disagreement between potential coalition partner is water”.

      Reply
  7. We already have a CGT targeting the speculators who have been pushing up land/house prices.Does this really need to be expanded to capture the hard won increments of the average New Zealander?

    “In 2015, the government introduced the “bright-line test”, a method which attempts to tighten the property investment rules.

    The bright-line test states that (subject to exemptions) any gain from disposing of residential land within two years of acquiring it will be taxable. The test only applies to residential land. Residential land is land that has a dwelling on it or could have a dwelling on it and does not include farms or business premises.”

    AS I understand this current CGT just has to be made more targeted and enforcable. Do that.

    Reply
    • Blazer

       /  September 17, 2017

      the brightline test was set at 2 years instead of 5 to accomodate the usual suspects who wanted to sell up …like…um…

      Reply
      • The brightline test was set to make it simpler clearer to tax income from property sales that were often already subject to tax . It largely targets speculators.

        Labour say they will extend it to five years to target speculators.

        Labour also say the may consider a CGT – to target speculators that are already targeted by income on property sales and bright line tests.

        What if the expert tax group says that a CGT that exempts family homes is not going to achieve much if anything more than the current system plus an extension to five years of the bright line test?

        Reply
        • Blazer

           /  September 17, 2017

          what if,what if,we just let the situation alone,and do nothing?There are more issues involved,negative gearing,tax advantages of property set offs,’intention’ and. fairness.Fran O’ mentioned a cure for foreign buyers….stamp duty.Two years is too short to be an effective deterrent.

          Reply
  8. Ray

     /  September 17, 2017

    Geez Blazer, just this once you talk sense, what ever you have started taking keep right on.
    Some basic grammar lessons you you will be there.
    Have an uptick

    Reply

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