I’m not averse to the idea of a capital gains tax if it was comprehensive and matched by a decrease in other taxes.
The LabourGreen proposal for a CGT won’t be balanced by a reduction in other taxes and will exclude the family home which means it will have little or no affect on house prices.
A capital gains tax on property makes little sense unless it also applies to the family home, says Finance Minister Bill English.
Speaking at today’s Mood of the Boardroom event in Auckland, English told the country’s top business leaders the government was maintaining its “clear position” on the capital gains tax debate.
“We’re not supporting the extension of the current capital gains tax,” he said.
“The overseas experts who tell us we need it all say that it should be comprehensive on all capital gains. And if you don’t do the whole thing then it probably doesn’t make much difference.”
The LabourGreen proposal is typical of them – an overall increase in tax for little if any benefit.