Capital gains tax   Leave a comment

Capital gains tax is in the news again. Thought I’d re-share an earlier post.

Iain Blakeley

I know it’s wishful thinking to expect real analysis in political debates but, honestly, whether it’s time to introduce a capital gains tax in New Zealand is an issue which deserves more than the usual ping pong game of political rhetoric.

The refrain of the most vocal advocates is how a CGT will discourage real estate investment and encourage investment in other sectors where capital is much needed. The refrain of the most vocal opponents seems to be “it won’t collect as much as its supporters say it will”.

New Zealand’s current tax system exempts most capital gains from tax. Capital gains from investments in shares, businesses, real estate, art work, gold, jewellery, and antiques generally are not taxed. To argue this state of affairs is responsible for a skew in favour of investment in real estate and away from the sharemarket, for example, hardly seems to stack up. In…

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Posted July 16, 2013 by Iain Blakeley in Capital gains tax, Uncategorized

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