Capital gains tax: Winston Peters holds all the cards on changes
22 Feb 2019
The elephant in the debating chamber.
22 Feb 2019
The elephant in the debating chamber.
Originally posted by RadioNZ
The Tax Working Group's recommendation for a broad-based capital gains tax will test the strength of Labour's coalition with NZ First. Without NZ First it hasn't got the numbers to get the legislation through Parliament. The party's leader, Winston Peters, is on record as a strong opponent of a CGT. He has said it doesn't work in other countries and won't work here. Labour's in for a tough time, because Mr Peters will play this for all it's worth.
He'll want concessions, and his demands will be focused on NZ First's voter base in the regions and among older people. He'll almost certainly insist that farmers are exempt, and perhaps small businesses as well. We've seen it before with the changes Labour had promised to employment law, which NZ First watered down to a level that greatly reduced their impact. If Mr Peters goes through a similar exercise with a CGT he'll be a hero to those he has saved from it and his party could reap the rewards at the ballot box.
He'll want concessions, and his demands will be focused on NZ First's voter base in the regions and among older people. He'll almost certainly insist that farmers are exempt, and perhaps small businesses as well. We've seen it before with the changes Labour had promised to employment law, which NZ First watered down to a level that greatly reduced their impact. If Mr Peters goes through a similar exercise with a CGT he'll be a hero to those he has saved from it and his party could reap the rewards at the ballot box.
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