A Capital Gains Will Tax More Than Just Property Speculators

Normally I avoid getting into politics but it can’t be ignored in the present market especially as the heat and light generated by a rising market has become a major topic of discussion.

This is election year and for better or for worse the next six months will be filled with rhetoric. accusations, promises, scandals and exaggerations.

This will have a destabilising effect on the market the closer the elections come so cool head are needed. I have been through at least 20 such elections as I recall and it’s always the same. Who ever gets into Parliament immediately becomes sober, serious and conservative and all the promises, threats and accusations drift away or are watered down.

So it will be business as usual for experienced investors and may indeed, create bargains for the canny as the naive panic and rush to the exists

The latest attempt to destabilise the market comes from the Left Wing naturally enough.

It seems hard to imagine that people of what ever political bent, would vote for more taxes but who knows?

Labour wants to apply a Capital gains tax not only if you trade in property ( which exists already) but also on the sale of your business, your farm, your share portfolio, the part of your house you use for business, your family inheritance and also your bach.
Be careful what you wish for.

Labour would slap capital gains tax on property speculators
Sunday April 13, 2014 ONE News

A Labour-led government would impose a capital gains tax of 15% on realised gains from investment property, party leader David Cunliffe has announced.
Mr Cunliffe told TVNZ’s Q A programme it’s ‘lunacy’ that property speculators get tax-free capital gain.
He says the family home would be exempt from the tax.
‘I’m comfortable with that because speculators are driving this market,” he said.

Link

http://tvnz.co.nz/politics-news/labour-would-slap-capital-gains-tax-property-speculators-5914997

 

Details here:

http://www.nbr.co.nz/article/labour-plans-39-top-tax-rate-capital-gains-tax-15-rh-97137

 

Posted in News & Articles | 1 Reply

One thought on “A Capital Gains Will Tax More Than Just Property Speculators

  1. I have just returned from New Zealand on vacation not having been home for five years.
    My impression is that it is booming at least Auckland and Hamilton. Some of the smaller towns need a shot in the arm, but having said that Tairu and Otrahunga looked healthy, obviously buoyed by tourist dollars. David Cunliffe seems a self obsessed boor. As an outsider, why anyone would vote for the narrow minded left with their crazy policies when the New Zealand economy is doing well beats me. If labour wants to help New Zealanders they could do it a lot better by proposing a relaxing of the rigid reserve bank 0-2% inflation constraint allowing growth to get up a little steam before they put the breaks on.
    0-5% band would allow for more growth momentum and lower interest rates for all New Zealanders. Seems like a no brainer to me. Maybe labour should try that.

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