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Headline: Capital gains tax debate not over, Grant Robertson suggests

Antidote Commentary

The Tax Working Group is understood to have stopped short of recommending a broad-based capital gains tax in an interim report, but Finance Minister Grant Robertson has played down the report's significance.

In total 1093 comments were made and 15300 votes were cast. So what is the crowd saying?

Comment TotalPositiveNegativeName
So what exactly is/was the point of the TWG?  And how much did they cost, again?13915213k2w3
So the conclusion is that we are already over taxed and no room for more. 12414117Robward1
and how much has all this cost the taxpayer ?

CGT= rent increases, be careful what you wish for!8710215skatoengleze
@ 6th genkiwi, you do understand it was the FTA with China that allowed Chinese to buy NZ property and businesses. The Chinese FTA was proposed and signed by Labour when Helen was in charge. I dont know why moderators let completely 0 comments like yours through.84928ItsjustmyHO
It was commented on by National way before the tax working group that CGT on your second home will be expensive to administer and will not bring in the revenue people had been talking about75794CPK
Capital Gain is quite different from Income.

If you buy 1 Property for lets say $1m, which earns say $100k in income..

Now, lets say you hold that for 10 years, and its now worth $2m and returns $150k in income, due to inflation.

Now, lets say you decide to sell this investment for whatever reason,and trade if for an identical $2m property up the road, just because.

You would now have to pay capital gains on $1m profit, of lets say $300k, and be left with $1.7m left to buy this identical $2m property to produce your $150k income, 

You would in effect have to borrow $300k to pay the tax to be left in the exact same position you were before, or buy a cheaper property, which returns a lower income.

You are now far worse off than before, and have gained nothing, in fact the govt is now getting lower tax on the income from the new property, plus would have to give a tax credit for the new borrowing.

NOW, lets say the property market crashes BIG time, and if you had bought this new $2m property, and you can only get $1m for it, the govt will have to give you $300k as a tax credit, as CGT is a two way street.

What a mess.. and its why overseas CGT doesnt actually collect that much in tax, it also makes people NOT sell property, leading to a shortage of supply.
So all those people who voted Labour thinking they were going to bring about meaningful change will be seriously disappointed. Labour doesnt really care about you. Now that hey have their noses in the trough all they care about is staying in power.698011thehbomb
Best we set up a working group to analyse the outcome of this work group.67714Tall-Poppy
Remove cabinet ministers life time perks.  Thats costing a bundle and for what benefit exactly?
We dont need any more tax. We need the government to stop being so wasteful with our money. Take Pike River - we are literally spending millions to move dead bodies from one plot of land to another, its crazy. Jacinda gets a private plan because the plane everyone else took didnt fit in with her breastfeeding schedule and how much is this working group costing? Stop wasting our money. Forcing Te Reo onto school kids is todays plan to waste our taxes. They are simply being irresponsible with our money. 61709NZer
What did socialists use before candles?

Wont stop labour from adding more tax/ levys57581James Farrell
Dont laugh too soon. I see a smokescreen - defer the implementation until after the next election on the premise that the TWG had done the work but the â˜final decision just couldnt be made in time for it to be policy pre election. And that aside, if not CGT then a wealth tax will come in.....pitched of course to avoid targeting labours voting base....56648Tau Sagittarii
The TWG was a job for the ex Labour ministers. 
This govt is all about the cronies. 
Just look at the half a dozen ex labour ministers David Clark has hired at massive salaries for DHB jobs.
So we have paid this working group to come back with the answer National and the public told them before they started. Weasel words Labour. 51554Fry Bread
then paying the tax working group millions of tax pay money is a waste lets sack the lot of them 48502kiwijoe46
Theres already multiple CGT, rates, No depreciation, insulation, property traders, brightline.......the tax group need to focus on rorting areas of society who over charge and uncompetitive ie banks, councils, lawyers, civil justice dept...47481lt92
Exactly. Thats why we see Jacinda being undermined by Winston. They sold out for power. National wouldnt let Winston call the shots.47536Al100

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