Q+A – Michael Cullen on the Capital Gains Tax and TWG

Chairman of the Tax Working group, Michael Cullen, was interviewed on Q+A last night on Capital Gains Tax and water.

He was also interviewed on the Nation on Saturday.

Scoop: On Newshub Nation: Simon Shepherd interviews Tax Working Group Chair Michael Cullen

  • Sir Michael Cullen says there’s currently under-taxation at the top end of the income and wealth scale, and under his working group’s recommendations “people who have substantial capital assets in one form or another” would end up paying more.
  • Sir Michael disputes the effect Labour’s capital gains tax policy had on the party’s 2011 and 2014 election losses: “There was no real sign, actually, that that had any great impact in shifting votes around.”
  • He says some charities getting tax breaks might not be using their income for charitable purposes: “Some of those charities – at least on first examination – appear to not be passing on much of their income out to the supposed intended beneficiaries.”
  • Sir Michael says proposed environmental taxes on things like waste dumping would be aimed at changing behaviour, not increasing revenue: “Hopefully behaviour changes, so that the amount of money that you collect at the end of the day may not be much more… there’s just a lot less waste going to landfill.”
  • He says tax cuts for lower income earners would be an effective way to offset increased user-pays charges: “Actually reducing the bottom tax rate, or having even a tax-free area at the bottom, is more effective in compensation.”

Full transcript (Scoop)

The Q+A panel on Cullens interview and tax.

 

Leave a comment

21 Comments

  1. Corky

     /  September 24, 2018

    Full marks to Labour for making this an upcoming election issue. That will give us a chance to rid ourselves of these merry socialists for the next twenty years.

    I think the damage has been done though. Huge money would have left NZ. That means service industries looking after that money will now have to consider whether they can afford Gingernut Biscuits for morning tea.

    Add to that a probable upcoming ban on whitebait fishing, and many voters will be praying for 2020 to arrive.

    Reply
    • Blazer

       /  September 24, 2018

      ‘ Huge money would have left NZ. ‘..produce your evidence.

      Bending over for billionaires does not benefit NZ.
      As some wit said ..we can’t afford..the rich’.

      Reply
    • Gezza

       /  September 24, 2018

      The unavailability of gingernut biscuits for morning tea could be a blessing in disguise. I imagine it even be positively welcomed by the discerning raspberry bun, cream doughnut and shrewsbury eaters.

      If a ban on whitebait fishing is necessary for the young of these 5 different breeds of native fish that are whitebait to survive & recover I think most people would support it. The number of people who might think of this as a reason to dump a government would in my estimation be massively outnumbered by sensible people.

      Moodys doesn’t seem to be too concerned by the economic outlook at this point and I’m not sure that huge money has already departed New Zealand.

      But I agree that a capital gains tax coupled with some of these other proposals seem to be tinkering at the margins and won’t be electorally popular.

      Reply
      • Corky

         /  September 24, 2018

        ”If a ban on whitebait fishing is necessary for the young of these 5 different breeds of native fish that are whitebait to survive & recover I think most people would support it.”

        No conclusive science to back a ban. No public consultation. No nothing. I know many whitebaiters. They are a lifestyle tribe. And when you mess with a persons lifestyle…..

        ”Moodys doesn’t seem to be too concerned by the economic outlook at this point and I’m not sure that huge money has already departed New Zealand.”

        I doubt Moodys has a handle on how quiet money moves in an out of New Zealand. I expect our economic indicators to be in big trouble in a years time. It cannot be any other way with this big spending government. To be fair, National should have spend more on some projects Labour is rectifying.

        Reply
        • Blazer

           /  September 24, 2018

          ‘I doubt Moodys has a handle on how quiet money moves in an out of New Zealand. ‘

          But good to know you do!BOL.

          Reply
        • Ray

           /  September 24, 2018

          If they were serious about the survival of whitebait then there would be a call to eradicate trout who eat whitebait all the year round.
          Good luck with that!

          Reply
          • Blazer

             /  September 24, 2018

            Whitebait are the juveniles of five species of galaxiidae, a family of fish confined to the Southern Hemisphere.

            These species are:

            inanga (galaxias maculatus)
            koaro (galaxias brevipinnis)
            banded kokopu (galaxias fasciatus)
            giant kokopu (galaxias argenteus)
            shortjaw kōkopu (galaxias postvectis).
            The larvae of these species are born in freshwater, swept out to sea with the tide and return to rivers and streams in spring as whitebait. The most common species is the inanga, but both the banded kokopu and koaro make up significant proportions of the fishery.

            In New Zealand, whitebait fishing is seasonal: from August to November for all areas of the country except the West Coast, and September to November for the West Coast.

            Whitebait are translucent in appearance, and are around 4-5 cm long.

            Reply
          • Blazer

             /  September 24, 2018

            Ray has discovered salt water…trout.

            Reply
          • robertguyton

             /  September 24, 2018

            The whitebait black market should be the target, Imo.

            Reply
        • robertguyton

           /  September 24, 2018

          “I know many whitebaiters. They are a lifestyle tribe. And when you mess with a persons lifestyle…..”
          Crack-smokers are a lifestyle tribe.

          Reply
          • Corky

             /  September 24, 2018

            ”Crack-smokers are a lifestyle tribe.”

            Nah, just losers. Money mule for the pusherman.

            Reply
  2. David

     /  September 24, 2018

    I find it quite annoying that Cullen should be telling us how he thinks we should be taxed, he had his time as finance minister it just feels like he is having another go but without putting his name on a ballot paper…seems sneaky. I am equally brassed off at Bolger re appearing too.
    Does it feel like they wanted to do stuff but electorally it would never wash but now they can push all those things. And they are both arrogant pricks, especially Cullen he is detestable had a mate of mine dated a relation of his and he is a prick in person as well.
    God its Monday morning and I am would up already !

    Reply
    • Corky

       /  September 24, 2018

      Be strong, Dave…the nightmare in Aoteroa ends in 2020.

      Reply
    • Blazer

       /  September 24, 2018

      dear oh dear…’brassed off’..I am going to get quite cross with you David-commentators from all political persuasions agree on CGT.
      Even John Shewan the go to man on tax matters for the Nats can see the merits.
      It is political poison of course.

      Reply
      • PartisanZ

         /  September 24, 2018

        … and will remain poisonous as long as it is called and couched as “capital gains tax” …

        The power of language as systems justification eh? (Kinda the inverse of the Te Reo ‘threat’?)

        Wealth & Asset Tax offset by reduced income tax has a much better chance …

        Reply
        • PartisanZ

           /  September 24, 2018

          Or just ‘Fair Tax’ …

          Reply
        • High Flying Duck

           /  September 24, 2018

          Why the TOP Party didn’t reach the 5% threshhold in a minute – turn everybody into serfs renting their own properties from the Government!

          Reply
      • High Flying Duck

         /  September 24, 2018

        Everyone agrees the CGT has merit as regards “fairness”. The problem is, it has no practical benefits, takes over 10 years to bring in any money, is ridiculously complicated to administer and enforce and requires complex tax returns every year.
        That’s before you get into exemptions and loopholes and as you say “political poison” as the Government tries to explain how slapping a CGT on Kiwisaver is a great idea!

        Reply
  1. Q+A – Michael Cullen on the Capital Gains Tax and TWG — Your NZ – NZ Conservative Coalition

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