Union funded CGT campaign ‘astrotruf’

April 9, 2019

A union-backed lobby group is campaigning for a capital gains tax:

Tax Justice Aotearoa, a coalition of community and union groups, has spent $15,000 on ads in major newspapers, billboards and buses.

At its launch at Parliament today, about 15 members of Tax Justice Aotearoa gathered holding signs saying: “Fairness is the Kiwi way, it’s time for a capital gains tax.”

It’s also calling for tax cuts for low to middle income-earners and hikes for the highest paid.

Spokesperson Paul Barber responded to questions from the Taxpayers Union about the source of the money used to pay for it.

“We’ve funded the campaign by chipping together our various skills and resources, and we’ve had a bit of support around communications work and that’s all we’ve got at this stage.”

Mr Barber from the Council of Christian Social Services earlier told RNZ the group’s campaign had been largely supported by the Public Health Association.

The association’s a registered charity which is partly funded through a contract with the Health Ministry, but also receives donations from the public. . . 

Registered as a charity, partly funded by the Ministry of Health and spending money on a political campaign? . . .

How can that be?

But Mr Barber said the ads were paid for from donations, and the Public Health Association only contributed by offering communications support.

Services in kind for a political campaign still isn’t right from a publicly funded body.

Jordan Williams from the Taxpayers’ Union says:

“This campaign is not a grassroots movement – it’s more like astroturf. The campaign group is a union-funded front for New Zealand’s usual left-wing agitators. They are funded by the same people who bankroll the Labour Party’s campaigns and even include the Labour Party’s recent General Secretary in their steering committee.”

“The group’s key message – claiming that ‘most’ New Zealanders support a capital gains tax – is false. Public polling consistently shows Kiwis want the Government to axe Dr Cullen’s unfair tax.”

“Despite extensive media coverage of their campaign ‘launch’, the front organisation has attracted just a few hundred signatures on their pro-CGT petition. That will be embarassing for the union cronies when more than 3,000 New Zealanders have used the Taxpayers’ Union’s email tool to tell Jacinda Ardern to axe this tax.”

“If the Government is too afraid to promote Michael Cullen’s unfair tax itself, it should scrap the proposal, instead of palming off the politics to a front group for the Labour Party.”

“Anyone with big-union money can hold a press conference in Wellington and set up a website with American stock images, but until this group can show that typical New Zealanders are engaged in its campaign, it shouldn’t be taken seriously.”

A Reid Research poll confirms a majority are opposed to a CGT::

New Zealanders do not want a capital gains tax (CGT) – not on their investment property, not on their farms or businesses, and definitely not on their KiwiSaver.

Newshub has been given exclusive access to a Reid-Research poll commissioned by Business New Zealand that shows an overwhelming majority of voters – 65 percent – don’t think a CGT should be a priority for the Government.

The poll found that just 22.8 percent think it should be a priority. And nearly half of voters – 47.8 percent – say the CGT debate has harmed the Government, while 33.1 percent say it hasn’t, and 19.2 percent don’t know.

David King, a waterproofing and industrial coating master, spent 26 years building his business Modern Maintenance Products from scratch. And it’s endorsed by Parliament – he just finished fixing up a bunch of MPs’ leaky homes.

But King told Newshub he’s livid about a potential CGT on his business.

“I’m a bit hot under the collar about this. I don’t have a KiwiSaver, I don’t have any other savings – my savings are in this business.”

That’s the case for a lot of small businesses people. They work long hours and pour their profits back into the business leaving little if any for other savings.

Most New Zealanders are also opposed. The Reid-Research poll asked New Zealanders: “Do you think there should be a capital gains tax on things like businesses and farms?”

The majority – 54.3 percent – said “no”, while just 31.6 percent said “yes”.  . . 

On taxing property profits, half of voters pushed back. The poll found 49.8 percent don’t think there should be a CGT on property – the family home would be exempt. 

And that’s versus just 39.1 percent that support it.  . . 

When it comes to KiwiSaver, voters say hands off. The poll found that 90 percent do not think there should be a CGT on KiwiSaver earnings. That leaves just 4.4 percent – next to no one – that support the idea. 

Ninety percent is a very clear majority, even with a margin of error of 3.1%.

Fairness and justice that are motivating supporters of a CGT are abstract concepts but neither would be improved by the proposal put forward by the Tax Working Group with three of its members dissenting.

The proposal would be both unfair and unjust and would do nothing to counter the inequity which concerns its supporters.


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