Answer’s maybe and that’s final

David Cunliffe has given five different answers to the question of whether or not CGT will be due on the family home when your parents die.

The answer is maybe and that’s final as far as he’s concerned because whether it is or whether it isn’t he’s got a problem.

If it is it will be a death tax by stealth which would be politically unsellable.

New Zealand families will be distressed to learn that Labour would force them to sell their deceased parents’ home within a month of their death or face a punitive capital gains tax, National Party Finance Spokesman Bill English says.

“The more David Cunliffe tries to explain his complicated capital gains tax, the more he ties himself in knots and confuses New Zealanders,” Mr English says.

“Last night on NewstalkZB, he contradicted his finance spokesman by saying Labour’s capital gain tax would apply to a family home after the death of a parent, unless it was sold within a month.

“In other words, he would force families to rush through the sale of their parents’ family home at a distressing time in their lives, or penalise them with a new tax.

“Just hours earlier, on RadioLive David Parker said the capital gains tax would not apply.

“If David Cunliffe and David Parker cannot get their story straight, it is little wonder that New Zealanders are confused and uncertain about Labour’s higher tax agenda.

“This is just one of five new taxes Labour and the Greens would impose on New Zealanders. This would stall New Zealand’s good economic momentum, creating uncertainty and costing jobs

“By contrast, National’s clear economic plan is successfully supporting higher wages and more jobs. It is steering New Zealand back to surplus this year and ensuring government spending is invested wisely to deliver better results,” Mr English says.

But if CTG isn’t levied on the family home when your parents die the tax take won’t live up to their projections which will leave a big hole in their budget.

Voters have a right to know the answer before the election.

Prime Minister John Key stepped up his attack on Labour’s capital gains tax today, suggesting it will create a headache for grieving children who inherit a house on the death of their parents. . .

Mr Key said: “You’d have to say by any definition it’s a complete and utter mess.”

Mr Key said Mr Cunliffe had yesterday told New Zealanders “that if they don’t sell the family home of their deceased parents, then within one month they will have to start paying a capital gains tax”.

“‘That is a horrifying thought for New Zealanders to be put in that position. Probate wouldn’t even come through within one month.

“I think everyone would accept the number one priority when your parent or parents pass away is not whether you should be out there flogging off the family home so you don’t have to pay a capital gains tax, it’s dealing with all the emotions and stress and issues that go with losing a loved one.”

Labour’s policy states the tax is payable only on the gains since inheritance and only when the home is sold.

Mr Cunliffe this morning said the fine details of when an inherited home would be liable for the tax would be worked out by and expert advisory group.

“Other countries have a range of periods — Aussie uses two years, some countries from the point of death, others from the point of settlement.”

Mr Key said Labour should have the answers now.

“We are now a couple of weeks out from an election this is a key policy for Labour and they can’t tell New Zealanders when it comes to their number one asset, their family home, how it will be treated.”

Will Labour's Capital Gains Tax (one of five new taxes) punish Kiwi families when their parents pass away? Let's ask them.

3 Responses to Answer’s maybe and that’s final

  1. Gravedodger says:

    I guess what is actually happening to the unraveling NZLP election campaign is entirely predicated on their leader having such abysmal support from his caucus.

    The mind boggling idea that the unions can deliver a leader over the wishes of caucus would be anything other than a disaster is just pure logic,not.

    The out of school tales around Mr c having a focus group accompanying him to the “debates” following an intensive day of prepping employing Dark Arts specialists such as economic wizard Cullen, while a slightly jaded Key turns up with a PA as the next stop in a day of campaigning says it all really’
    Then there is the suggestion that Mr c was wired, hence the plaster on his neck was not a failed assassination scar but might have supported an ear piece, makes his performance a little more impressive but I guess after hours of “training” having a clatter in your ear might become tolerable.

    Where are KING, Mallard, Dyson, Curran, Cosgrove, Robertson, Little, Hipkins and Co.
    Parker and Twyford have bit parts but it seems it is Mr c on his lonesome, aided and abetted by the Haga Saga and Rawshark with alleged support from Herr Schmitz are the War Room’s tactical battle plan.

    Thankfully the good burghers of NZ are seeing the reality and complacency still appears the greatest threat to the countries future.

    Meanwhile on another planet, the key to Herr Schmitz’s future has gone awol and with Sykes predicted to die in the mud pools of Rotorua at the hands of Flavell, the unraveling continues.

    Herr Schmitz claimed if the Internet Party was not a goer by ballot printing he would pull the plug yet he Registered and then early voted and said as he dropped the voting paper into the box,”Kaboom”.
    The reality is, he must be considering Flight over Fight as his next best option. Who would be surprised?

    Like

  2. jabba says:

    this shows why Labour continue to bring up the “scandal” to distract the media from digging down into their policies

    Like

  3. Marc Williams says:

    It should be a corrupt electoral practice/fraud offence to campaign on a policy that “will have the details decided by an outside agency after the election.” This is so open to abuse by any Party, that it should be covered by the rules of the Election Commission. It could be covered in the same paragraph as the “treating” clauses.

    Especially when you have had since 2002 to get the detail right.

    Also, how stupid do people have to be to be voting early without good reason – the voting lists for each Party are not even printed yet… yet some mindless morons seem to be proud of it!

    Like

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