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Originally Posted by Deadmeat
Does national have an actual argument against implementing a CGT? All i've heard from them is "too complicated" or calling the policy a hodge podge. Is it a case of them knowing it's a valid idea but they're determined to pursue the privatisation path purely for ideologies sake?
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Well, your response is fairly ideologically-based too. Whilst National's opposition is lame, it is clear that there are many principled reasons for opposing the CGT AS LABOUR WISHES TO IMPLEMENT IT. I've already given some of those reasons and there are more:
(a) They are STILL favouring capital accumulation. Why should the gain be taxed at a flat 15%?
(b) The CGT is part of an overall tax package that's intended to lower the taxes of Labour's traditional support base whilst remaining (presumably) fiscally neutral or at least not excessively inflating the national debt. But given the number of exemptions and the like, Labour's projections of how much they can make out of it are unlikely to come to fruition. NZ will likely be in more debt if Labour implements its overall tax package, of which the CGT is only a part.
(c) With CGT being taxed at 15%, it'll be a certainty that the lawyers and accountants will be having a field day trying to convert income to capital for taxpayers to help them avoid tax and to be able to claim artificial losses. Labour has shown an absolutely dismal record in terms of being able to close tax loopholes.
Honestly, if Labour gets in I guarantee you that I for one will try and make my way to the tax law team at my work. I can see the $$ signs flashing in my eyes already.