The Government would impose a Capital Gains Tax at the worst possible time for New Zealand when the economy is already slowing and businesses are less willing to hire workers or invest more, National’s Finance spokesperson Amy Adams says.
“Businesses have become gloomier about the economy and their own prospects, according to the NZIER’s quarterly survey. They see profits falling and costs rising.
“The results suggest annual GDP growth fell below 2 per cent in the first quarter – well below the 3 per cent Grant Robertson still insists is achievable in coming years. His position is now at odds with many economists, including those at the Reserve Bank.
“The Finance Minister is the only one still saying growth will sit at ‘about 3 per cent’. He needs to get his head out of the sand before he does more damage to our economy.
“The Government is out of touch with the realities of life in New Zealand if it thinks a Capital Gains Tax will help prosper. It would have the opposite effect – punishing our entrepreneurs and innovators, reducing new jobs and taking a bite out of Kiwis’ retirement savings.
“The Government talks in slogans about wellbeing and fairness but its actions put roadblocks in the way of Kiwis who create jobs and drive our economy. A Capital Gains Tax is a tax on the hard work of New Zealand’s small business owners, discouraging them from growing and taking on more staff. How is that fair?
“The Government inherited an economy growing three to four per cent but has allowed momentum to slow with bad policies, more taxes and wasteful spending. A weaker economy means less money in the back pockets of New Zealanders and less for core services like health and education. More taxes aren’t the solution.
“National believes New Zealanders should keep more of what they earn and a prudent Government should keep a firm hold on its spending before it looks for ways to impose more taxes. We would repeal a Capital Gains Tax and we won’t introduce any new taxes in our first term.”