Sir Michael Cullen has let Kiwis know what the Government has been too shy to reveal – the Tax Working Group was set up to design a capital gains tax which is only going to impose more costs on hard working New Zealanders and drive up rents, National’s Finance spokeswoman Amy Adams says.
“Sir Michael Cullen has clearly worked hard to convince a majority of group members to support the proposed new tax. A minority, he says, continue to oppose such a tax. It’s now clear that this was the real purpose behind the group all along.
“The Government already takes about $50,000 a year in tax from the average New Zealand household and has worked quickly to increase that burden with more taxes on everything from fuel to residential property.
“A Capital Gains Tax will see New Zealanders pay more tax on their small businesses, baches and investments and are known to be very difficult and expensive to apply.
“Sir Michael’s revelation that the CGT has the green light from his group and is ready to be reported back to the Government in February is welcome for its honesty but not for the impact it will have on the complexity of the tax system and New Zealanders living costs such as rent.
“The Government has already signalled its appetite for the new tax, one of many poorly conceived policies that are driving up rents including extending the bright-line test, ring fencing of losses, more burdensome regulations and the ban on foreign investment.
“National believes extra taxes that hit New Zealanders in the back pocket are wrong. If the Government cut down on its wasteful and poorly target expenditure we wouldn’t need any more tax. National are committed to repealing any capital gains tax brought in by this Government.”