Capital Gains Tax? Keep related posts in this thread, please.

[eri]

John Key had said that the reitrement age would not change on his watch so where does this idea that National had a good idea come from?

came from bill english when he was leader prior to the last election

[Wayne]

came from bill english when he was leader prior to the last election

can i leave you to fill the gaps in your knowledge

or do you need help?

Ah right - raise it 2 years in 20+ years time.
Forgot about that - but Billy was quite forgettable.
Actually raise it 2 years over 4 years starting in 19 years from when he said it - nonsence stuff.
Unfortunately Jacinda has said she would resign rather than raise it, much like JK - unfortunate really!

[eri]

A capital gains tax would push up house prices

as well as significantly increasing rents

according to economic modelling commissioned for the Tax Working Group.

https://www.stuff.co.nz/business/pro...lling-suggests

[Perry]

Never let the real possibilities get in the way of a proletariat hard sell, eh?

People who believe that adding a tax to something will make it cheaper get what they deserve.

Suckers!

[Don't believe the Hype]

People who believe that adding a tax to something will make it cheaper get what they deserve.

Suckers!

Petrol anyone??

[flyernzl]

Another excellent piece out today by BNZ economist Tony Alexander. Well worth a read.


http://tonyalexander.co.nz/…/attachme…/wo-september-27-2018/



In particular, I like the comment:
"The vast majority (of landlords) have not bought property simply to make a pile of cash in only two or three years – though the media would have us believe that this is the timeframe most of these people have adopted. Government Ministers continually use the misleading word “speculators” without any evidence they are able to present regarding the motivations of investors."

[Bluekiwi]

if it's income then depreciation on building must be back on the table?


The reds said they would not introduce a CGT this term it would be after the next election. Based on the bumbling performance so far what chance a second term?

Either way a CGT is irrelevant for me, It has not stopped house price inflation elsewhere and if you don't intend to sell then you don't get taxed.

Any CGT will make things more expensive justifying rent increase which I'm happy to pass on. This Red government has been fantastic for my cashflow and I can't see that changing anytime soon.

Cullen said the introduction of a CGT would not be retrospective sonin effect that means anyone holding assets and not planning to buy more are protected from CGT.

The next term is already in the bag mate, Jacinda has a baby, that's 10% of the vote just there man.

And National has no mates.

Question is, will it be 3 terms or 4 terms.

I thought Winny would hand it in after next election but I heard him sprouting away about some 90 year old leader, he is enjoying himself way too much to give it up now.

We are going to have Gregan back soon standing over us, yelling in our faces, four more year, or four more terms !!!

National did the best they could ever do at 46% and its not enough.

Only hope is for ACT to "Go Trump" on us, and for a "Real Greens" party to start up to catch half the green vote.
Instead of the patsy communist party greens we have at the moment, the 5 faced demon.

[artemis]

..... Only hope is for ACT to "Go Trump" on us, and for a "Real Greens" party to start up to catch half the green vote. Instead of the patsy communist party greens we have at the moment, the 5 faced demon.

New Conservatives as a mate? If they are less wacky this time round. The previous incarnation did quite well even though too weird, and the new party would pick up votes if an accommodation with National could be reached. They would need an Epsom type arrangement.

[Bluecoat]

Suddenly I have lost the urge to work hard.

http://www.msn.com/en-nz/money/news/two-options-proposed-for-taxing-capital-gain/ar-BBNzx30?ocid=ientp

[artemis]

Suddenly I have lost the urge to work hard. .....

Nope, you have to continue to work hard so that you can pay more tax to those that don't, won't or can't. It is called redistribution so it sounds like it's all about being fair.

"Since this is an era when many people are concerned about 'fairness' and 'social justice,' what is your 'fair share' of what someone else has worked for?" Thomas Sowell.

[Perry]

Not really related to illusory capital gains, but it is - sort-of. The item's about the NZ Super Fund. Doubtless the gummint has trumpeted that it has resumed contributions. What it will have kept very quiet about is that it takes back in tax what it contributed. Politics!

'Borrowing from the future': NZ Super Fund warns returns can't last, again
28 Sep 2018

For the first time in close to a decade, the fund was boosted by contributions from the Government, resumed by Finance Minister Grant Robertson, although the tax paid by the fund meant the Crown effectively withdrew roughly as much as it put in.

As most anyone with even half a brain knows, the much-vaunted panacea of CGT is really all about allowing the gummint to obtain tax revenue from inflation. Inflation that is largely caused by the gummint, itself.

[Don't believe the Hype]

whould you be supportive of a CGT being introduced and the funds directed to LGA's with the equivalent reduction in (or abolition of) rates? I.e. finding a different way to fund Councils vs. the current land tax (rates)

[eri]

councils only want a different way to raise funding

so they can raise more, grow bigger, do more things

i would rather spend my money on my projects

than give it to them for theirs

[Wayne]

Capital gains tax would not hold back property investment

https://www.stuff.co.nz/business/107...rty-investment
After all, where else are you going to get an investment where you can leverage like you can with property?

[Don't believe the Hype]

What it does is

1 - it removes liquidity from the market. Which in fact is a negative on the supply side of the equation. In turn driving up prices.

2 - add compliance costs to the system meaning the actual impact to govt coffers is tax take less costs (collection, legal, accounts) - will be a great time to be a partner at an accounting firm

3 - it add risk that if there is a crash capital losses can be claimed meaning the entire country shares the risk of property investors

4 - over time becomes just another cost that is factored into selling price expectations

5 - will drive up rents if applied as an annual land tax rather a tax collected on disposal of the asset.