Labour obviously hasn’t understood why the economy got into a mess under their watch because they’re proposing to give us more of the same: higher taxes, borrowing and spending.
Labour has admitted it would borrow more than National in the short term to help fund new policies but is confident its plans, including a capital gains tax, would cut debt over the long term.
Not only is this stupid policy, it’s out of step with the way most New Zealanders are thinking.
Individuals and households have been spending less and saving more.
They’ve got National’s message that consumption based on borrowing must be replaced by savings, investment and export-led growth.
Voters who understand what caused the problem and how to solve it are unlikely to support a party whose prescription is more of what made us sick.
Homepaddock 
Labour needs to be questioned closely on what they mean by ‘short term.’
By my calculations, even if they bring in a cgt on all assets, they will generate little gummnt revenue for at least ten years. Dim Post has a graph of the Australian experience.
The only ways they can generate serious revenue in the short term is to make their new tax retrospective by at least five years or change it into a stamp duty on all sales as from now.
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Whatever the details of Labour’s CGT might be, it’s slam-dunked National, and the Blue Team is looking punch-drunk and light-headed after days of frantic arm-waving and squealing.
People like this. Both the CGT and the sight of National wetting itself.
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What is the purpose of Labour bringing in a CGT and borrowing more.. its to help pay for something like $11 billion in unfunded promises in non productive programmes plus corporate welfare research and development.
This is what I was getting at yesterday.. they have chosen to tax and spend to keep the party going.
The crying need is reduce Govt spending, not increase it. NZ has a particular problem in sourcing cheap loans for productive development and a CGT simply funnels money back to the 50% of us who are net state beneficiaries.
If we must have a CGT.. then put it all into a development fund.
JC
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